Nearly 30% of Young Americans Have Over $1K in Credit Card Debt — Here’s How They Can Fix It

Maddie Duley

October 18, 2022 at 4:03 PM·4 min read

If you feel like you’re drowning in credit card debt, you are not alone. It can be financially overwhelming to stay on top of all the card fees, bills and personal expenses on your plate. A recent survey conducted by GOBankingRates discovered that nearly 30% of Americans under the age of 24 have more than $1,000 in credit card debt.

The Future of Finances: Gen Z & How They Relate to Money
More: If Your Credit Score Is Under 740, Make These 4 Moves Now

If you fall into this category or you’re looking for new strategies to overcome the credit card debt you owe, keep reading to find out best practices from financial experts.

Young Americans and Credit Card Debt by the Numbers

Younger consumers and those newer to owning a credit card are not exempt from credit card debt. According to the GOBankingRates survey, 28% of Americans under the age of 24 have over $1,000 in credit card debt.

Of those under 24 with credit card debt, 16% have debt between $1,001-$2,500, 10% have debt between $2,5001-$7,500 and 2% have debt of over $10,000. Fortunately, there is also a healthy proportion of those under 24 with lower amounts of debt — 32% have debt between $1-$500 and 10% have debt between $501-$1,000.

When comparing younger Americans’ credit card debt to the general population, young Americans are more likely to have higher amounts of credit card debt, as just 24% of all Americans have credit card debt over $1,000.

In the general population across all ages, 11% of Americans have credit card debt between $1,001-$2,500 and 8% of Americans have credit card debt between $2,501-$5,000. Out of the Americans who have credit card debt over $5,000, 4% have debt between $5,001-$7,500 and 4% have debt between $7,501-$10,000. Five percent of Americans have debt over $10,000.

A greater percentage of younger Americans have under $1,000 in debt (42%), however, as compared to the general public (40%).

Live Richer Podcast: How To Get Rid of Your Student Loan Debt

How To Get Rid of Credit Card Debt

Regardless of the number, maintaining credit card — particularly debt you can’t pay off — is not good for your long-term financial health. Let’s take a look at the best ways to eliminate credit card debt completely.

Lock Credit Cards

It’s challenging to get out of credit card debt if you are still accumulating more. By locking your credit cards, you can focus on taking steps to eliminate the debt you have and prevent it from building up in the future, according to Jay Zigmont, Ph.D., CFP and founder of Childfree Wealth.

Set a Goal

After you lock your credit cards, it’s important to set an attainable goal for handling the debt you have in a timely manner.

“For example, if you are looking to pay down $6,000 in debt this year, you would budget $500 each month toward paying down the debt,” Zigmont said.

Many people opt to pay off their credit card debt using the snowball method. Zigmont explains how this strategy works: “In the snowball method, you pay the minimum monthly payments on everything, and then put everything else on the smallest debt first. Once you pay off your smallest debt, take the time to celebrate and then put everything on your next-smallest debt, building the snowball.”

Cut Back on Spending by Separating Your Wants and Needs

If you are inundated with credit card debt, it’s important to cut back on your spending in order to prioritize the debt you currently owe. An easy way to cut back on spending is to divide your spending into two categories: wants and needs.

“For example, you might call coffee a need, but buying it from a nice coffee shop is probably not a need — you could save money by making it yourself at home or work,” said Ryan Duitch, co-founder and CEO at Arro Finance.

Your “wants” is the category where you should cut back. Whether that means choosing just one television streaming platform and getting rid of another for a few months, or eating out once a week instead of every day, every little change you can make to save will add up in a major way over time.

“Remember that once your debt is gone, you will have some money to put back into your budget since you won’t be charged interest anymore,” Duitch said.

Avoid Running Up Your Credit Card by Tracking Your Spending

It’s easy to lose track of where your money is going and how much you are spending. To avoid accumulating debt inadvertently, consider downloading your bank app or checking your accounts online regularly to stay on top of your spending.

“Most financial institutions allow you to easily check your balance and set up alerts online or through a mobile app,” Duitch said. “Build a habit of checking your balance often, even daily, if needed, and set up alerts to remind you when your balance crosses a certain threshold. This will help keep you on top of your spending and let you know how you’re trending for the month if you use multiple methods of payments.”

More From GOBankingRates

Methodology: GOBankingRates surveyed 1,003 Americans ages 18 and older from across the country between Sept.19 and Sept. 20, 2022, asking 12 questions: (1) Which of the following is the most important to you when it comes to picking a new credit card?; (2) How do you handle your credit card bill each month?; (3) Do you know your credit score?; (4) At what age did you get your first credit card?; (5) What is your primary purpose for using your credit card(s)?; (6) Do any of the following statements apply to you? (Select all that apply); (7) Which credit card fees do/would you hate the most?; (8) How many credit cards do you own?; (9) What is your total current credit card debt?; (10) How long do you think it will take you to pay off your credit card debt?; (11) Have you ever hit the credit limit on your credit card?; and (12) Have you ever charged any of the following to your credit card? Select all that apply. GOBankingRates used PureSpectrum’s survey platform to conduct the poll.

This article originally appeared on GOBankingRates.com: Nearly 30% of Young Americans Have Over $1K in Credit Card Debt — Here’s How They Can Fix It

AFP
Indian capital records highest temperature of 49.9 Celsius
Temperatures in India's capital have soared to a record-high 49.9 degrees Celsius (121.8 degrees Fahrenheit) as authorities warn of water shortages in the sprawling mega-city.- 'Water scarcity' - New Delhi authorities have also warned of the risk of water shortages as the capital swelters in headache-inducing heat, cutting supplies to some areas.
Reuters
China's Geely to launch hybrids with more fuel-efficient engines
China's Geely Holding Group on Wednesday said it would launch a series of hybrid models in the first half of next year equipped with its next-generation, more fuel-efficient engine. Geely's engine achieves a thermal efficiency of up to 46.1%, according to a product certificate issued by the government-owned CATARC Huacheng Certification Co. The new models will be launched for Geely Auto's Galaxy series and its Lynk & Co brand.
Associated Press
Police search the European Parliament over suspected Russian interference, prosecutors say
Belgium’s federal prosecutor’s office said on Wednesday that police carried out searches at the residence of an employee of the European Parliament and at his office in the Parliament’s building in Brussels over suspected Russian interference. Prosecutors said in statement that the suspect’s office in Strasbourg, where the EU Parliament’s headquarters are located in France, was also searched in partnership with the EU’s judicial cooperation agency, Eurojust, and French judicial authorities. The raids took place less than two weeks before Europe-wide polls on June 6-9 to elect a new EU parliament.
Reuters
Israel sends tanks into Rafah on raids amid Gaza-wide offensive
Israeli tanks conducted a second day of probing attacks across Rafah on Wednesday, after Washington said the assault did not amount to a major ground incursion of the southern Gazan city that U.S. officials had told Israel to avoid. Israeli tanks advanced to the heart of Rafah for the first time on Tuesday after a night of heavy bombardment, defying an appeal from the International Court of Justice to end its attack on the city, one of the last places of refuge in Gaza. The United States, Israel's closest ally, reiterated its opposition to a major Israeli ground offensive in Rafah but said on Tuesday it did not believe such an operation was under way.
USA TODAY
You're not imagining it: There's been a lot of tornadoes this spring. Here's why.
The data is still rolling in, but experts already know spring 2024 has been an active and deadly season for tornadoes.
USA TODAY
Alaska trawler bill garners industry reaction, most Alaskans support banning them: poll
Alaska Congresswoman speaks on bycatch, sustainability and fishery management's impacts on subsistence communities.
Reuters
US gives school districts $900 million for electric school buses
The funding is the third tranche of $5 billion that the U.S. Environmental Protection Agency (EPA) will hand out over five years through a clean school bus program created by the Bipartisan Infrastructure Law in 2021. The EPA rebates will support the purchase of 3,400 school buses, 92% of them electric, the White House said.
Time
Why Deadly Bus Accidents Are So Common in Developing Countries
While buses are among the safest modes of travel in the U.S. and Europe, researchers have found the “opposite” is true in the developing world.
Reuters
Kosovo prepares to house 300 inmates from Denmark, raising human rights concerns
In a jail in eastern Kosovo, plans are underway to remove all domestic inmates and open the space for foreign prisoners who will be airlifted from Denmark, more than 2,000 kilometers (1,243 miles) away. Denmark is expected to send 300 inmates to the Balkan country, a first for Kosovo and a move highly criticized by Danish human rights experts. Kosovo's prison service will rebuild the Gjilan jail during the next two years to Danish standards before receiving the convicts from non-European Union countries, who were due to be deported from Denmark after their sentences.
Reuters
China to invest more than $830 million in solid-state battery research -source
China plans to invest more than 6 billion yuan ($830 million) in a government-led project to develop solid-state batteries with six firms eligible for state funding to work on the next-generation technology, a person with direct knowledge of the matter said. Solid-state batteries hold the promise of improved safety, a longer lifespan and faster charging compared with conventional lithium-ion batteries that use flammable liquid electrolytes. China is seeking to cement its lead in the global EV market after early and heavy investment in domestic supply chains helped it become the most cost-competitive battery and EV producer in the world.
CNN
South Africans go to the polls in election seen as biggest test yet to ANC’s 30 years in power
Millions of South Africans are voting in what is expected to be the most pivotal general election since the end of apartheid.
AFP
Inside a semiconductor 'clean room' at Japan's top university
To study semiconductors at Japan's top university, first you need the right clothes -- protective overalls, shoe covers, plastic gloves and a lightweight balaclava to keep your hair out of the way.Chip expert and University of Tokyo professor Tadahiro Kuroda said Japan's push into a sector where it was once dominant feels like "spring has returned".
Associated Press
Biden, Harris to launch Black voter outreach effort amid signs of diminished support
President Joe Biden and Vice President Kamala Harris are stepping up their reelection pitch to Black voters, a key part of their 2020 winning coalition that has shown signs of fraying. The two will stop at Girard College, an independent boarding school in Philadelphia with a predominantly Black student body, and visit a small business to speak to members of the Black Chamber of Commerce. The Philadelphia stops are the start of what the campaign is describing as an eight-figure, summerlong effort to engage Black student organizations, community groups and faith centers.
Associated Press
Key Republican calls for 'generational' increase in defense spending to counter US adversaries
The top-ranking Republican on a Senate committee that oversees the military is calling for a “generational investment” in America's defense, saying aggressive and significant spending increases are necessary to deter coordinated threats from U.S. adversaries like Russia, Iran and China. Sen. Roger Wicker, a Mississippi Republican on the Senate Armed Services Committee, told The Associated Press that he will seek an additional $55 billion in defense spending over the limits that were forged in the deal to suspend the nation’s debt limit a year ago. Wicker explained his position in global terms, saying there has “never been such a level of cooperation and coordination among an axis of aggressors" that aims to challenge U.S. dominance.
Reuters
PwC to become OpenAI's largest enterprise customer, WSJ reports
PwC will roll out ChatGPT Enterprise, a version of the Microsoft-backed AI startup's chatbot aimed at large companies, the report said. The accounting firm will provide ChatGPT Enterprise to its 75,000 U.S. employees and 26,000 UK employees, the report added. Both companies did not disclose the financial terms of the deal or details on PwC's plans to resell the AI product, the Journal reported.
CNN
Biden returns to Philadelphia, this time to win back Black voters
President Joe Biden plans to launch a nationwide effort to mobilize Black voters during a campaign rally in Philadelphia on Wednesday, aiming to win back support from a slice of the electorate that polls show wavering in support.
CNN
Evidence of surgical tumor removal in ancient Egyptian skull is ‘milestone in the history of medicine’
In a skull marred with bone damage from multiple tumors, archaeologists have found never-before-seen evidence from ancient Egypt of surgical intervention for cancer.
Associated Press
A record-holding Sherpa guide concerned about garbage on higher camps on Mount Everest
One of the greatest Mount Everest guides on Wednesday expressed concerns about the peak's growing piles of garbage, as he was honored by his government to mark Everest Day. Sherpa guide Kami Rita, who has scaled Mount Everest a record 30 times, was honored by Nepal's Prime Minister Pushpa Kamal Dahal in Kathmandu on the anniversary of the first successful summit by New Zealander Edmund Hillary and Nepali Sherpa Tenzing Norgay in 1953.
AFP
US, China defence chiefs to hold rare talks in Singapore
The US and Chinese defence chiefs are set to hold rare direct talks in Singapore this weekend, offering hopes of further military dialogue aimed at preventing flashpoint disputes from spinning out of control."The hope here is for the (Dong-Austin) meeting to be the beginnings of cautious rapprochement to re-establish military-to-military open lines of communication," Mustafa Izzuddin, senior international affairs analyst with consultancy Solaris Strategies Singapore, told AFP. Biden and Xi agree
AFP
Asian markets fall on US rate concerns, oil rises after attack
Equities fell Wednesday on lingering worries about the outlook for US interest rates, while oil prices extended their gains after an attack on a ship in the Red Sea stoked fresh worries about supplies from the Middle East.Oil prices rose again on geopolitical concerns after a bulk carrier was attacked in the Red Sea, a key waterway for shipping and particularly crude.