One key factor that researchers tend to use when assessing credit card debt is the age of the debt holder. By understanding which age groups possess the most amount of credit card debt, credit counseling professionals in New Jersey can better assist individuals in that age group with avoiding credit card debt in the first place.
A look at the average credit card debt
Credit card debt is something that 75% of credit card holders have. A 2020 study of consumer credit card debt revealed that the average credit card holder owed $5,315. Surprisingly, this number has decreased since 2019 where the average was $6,194.
A look at the different age groups
Researchers took a look at the different generations to determine who had the most credit card debt. They discovered that those in Generation Z had the lowest amount of credit card debt, ringing in at $1,963. The individuals with the highest amount of debt were Generation X, which includes those between the ages of 40 and 55 years old. Generation X credit card holders had an average credit card debt of $7,155.
A look at the different states
Apart from looking at the different age groups, researchers also took a look at the different states where credit card holders lived. Alaska tops the chart with credit card holders having an average debt of $6,617 in 2020. Following Alaska, Connecticut rung in at $6,040, and Virginia came in third with an average credit card debt of $5,992.
Dealing with debt
To try to reduce the amount of credit card debt that you have, you can follow a credit counselor’s recommendations for budgeting and reducing your spending. If you’re dealing with an extravagant amount of credit card debt, it may be helpful to contact an attorney to determine what your best approach is to handle the debt.