Credit card debt is arguably one of the worst forms of debt. It usually comes with an extraordinarily high interest rate and can quickly spiral out of control if you are not careful about your spending. This can lead to a mountain of debt that crushes you financially. Today, many Americans find themselves in this situation – credit card debt is on the rise nationwide.
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According to the Federal Reserve Bank of New York, total U.S. household debt increased by $109 billion in the second quarter of 2024, reaching $17.80 trillion. And what’s more? Credit card balances increased by a whopping $27 billion, reaching a total of $1.14 trillion.
A big driver behind ballooning credit card debt: inflation – the U.S. Bureau of Labor Statistics reported that consumer prices rose 3% between June 2023 and June 2024 alone. The reality is that the cost of living is rising and more and more people are turning to credit cards to make ends meet.
You may be wondering who has the most credit card debt. Well, two generations in particular are seeing the fastest rise in credit card debt: Generation Z and Millennials. In some major U.S. cities, these generations have particularly high average credit card balances.
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12 metropolitan areas where credit card debt is rising among Generation Z and Millennials
Here are 12 cities where Gen Z and Millennial credit card balances are rising the fastest, according to an Experian analysis:
1. Augusta, Georgia
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Average Generation Z Credit Card Balance: $3,172
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Average Millennial Credit Card Balance: $6,533
2. Charleston, South Carolina
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Average Generation Z Credit Card Balance: $3,994
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Average Millennial Credit Card Balance: $7,494
3. Charlotte, North Carolina
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Average Generation Z Credit Card Balance: $3,610
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Average Millennial Credit Card Balance: $7,075
4. Fayetteville, Arizona
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Average Generation Z Credit Card Balance: $3,381
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Average Millennial Credit Card Balance: $6,386
5. Honolulu, Hawaii
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Average Generation Z Credit Card Balance: $4,231
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Average Millennial Credit Card Balance: $8,016
6. Huntsville, Alabama
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Average Generation Z Credit Card Balance: $3,231
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Average Millennial Credit Card Balance: $6,498
7. Lakeland, Florida
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Average Generation Z Credit Card Balance: $3,305
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Average Millennial Credit Card Balance: $6,579
8. Oxnard, California
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Average Generation Z Credit Card Balance: $3,857
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Average Millennial Credit Card Balance: $7,464
9. Palm Bay, Florida
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Average Generation Z Credit Card Balance: $3,353
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Average Millennial Credit Card Balance: $7,031
10. Provo, Utah
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Average Generation Z Credit Card Balance: $2,788
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Average Millennial Credit Card Balance: $6,997
11. San Francisco, California
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Average Generation Z Credit Card Balance: $3,882
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Average Millennial Credit Card Balance: $7,236
12. Tucson, Arizona
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Average Generation Z Credit Card Balance: $3,063
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Average Millennial Credit Card Balance: $6,524
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This article originally appeared on GOBankingRates.com: 12 Cities Where Gen Z and Millennial Credit Card Balances Are Rising the Fastest
