Higher income households more likely to have long-term credit card debt
The percentage of Americans who hold credit card debt has increased significantly in the last two years with higher income households more likely to have long-term debt of this kind.
A new survey from Bankrate.com reveals that 54 million Americans have held their credit card debt for at least one year, that’s 60% of the population in 2023 compared to 50% two years ago, but unchanged from a year ago.
The stats show that those households with an annual income of $100,000 or more are more likely than lower income households to have been in debt to their card provider for at least a year and for at least five years.
Among this wealthiest income bracket, 72% have held credit card debt for a year or more and 27% have held it for at least five years. For those households with an annual income below $50,000 the one-year figure falls to 53% and the five-year figure is just 13%.
However, lower income households are more likely to be carrying credit card debt at all – 53% among the $50K or less group, 48% of those in the $50,000-79,000 group, 44% in the $80,000-$99,999 group, and 38% for those above $100K.
Gen X (ages 43-58) and Gen Z (ages 18-26) cardholders are more likely (53% and 52% respectively) to carry a balance from month to month, compared to 49% of millennial (ages 27-42) cardholders and 41% of baby boomer (ages 59-77) cardholders. However, millennials are more likely to have held their credit card debt for at least one year.
Overall, almost half of respondents (47%) are carrying debt from month to month, slightly higher than in 2022 (46%) and up from 39% in 2021.
Bankrate’s senior industry analyst, Ted Rossman, says more people are carrying more debt and at higher interest rates.
“Credit card debt is easy to get into
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