Image source: Getty Images
Gen Z carries the lowest credit card balance of any working generation — about $3,493 on average, according to Motley Fool Money research. That’s roughly half of what the average millennial owes.
But this stat gets misread constantly. It’s easy to think Gen Z is just better at managing their money. The real story is more interesting, and a little less flattering.
Gen Z’s credit card debt compared to other generations
Gen Z holds the smallest average credit card balance of any generation still in the workforce.
Gen X sits at the top, near peak earning years, with the biggest balances by far. Here’s the full picture of average credit card debt for each generation:
| Generation | Average Credit Card Balance |
|---|---|
| Gen Z (18-28) | $3,493 |
| Millennials (29-44) | $6,961 |
| Gen X (45-60) | $9,600 |
| Baby boomers (61-79) | $6,795 |
| Silent Generation (80+) | $3,445 |
The Silent Generation owes slightly less, but its members are mostly retired. Among people still working, Gen Z is the clear low.
If your own balance is creeping up, a 0% intro APR balance transfer card can freeze the interest while you pay it down. Compare today’s top balance transfer offers and stop interest before it snowballs.
Why Gen Z’s balances appear low
There’s a mix of reasons for Gen Z’s low credit card balances relative to other generations. Only one is really about discipline, the rest are more subtle.
Smaller limits cap how much they can borrow
Probably the simplest reason Gen Z owes less is that it can’t borrow as much yet. Younger cardholders tend to carry starter cards with low limits that track their lower incomes. Comparatively, Gen X has decades of credit history and much bigger limits to draw on.
Less available credit means less rope to hang yourself with. That mechanical gap explains a big chunk of the difference on its own.
Millions aren’t in the credit system yet
A lot of Gen Z simply isn’t counted. Roughly 25 million U.S. adults have credit files too thin or stale to generate a score, according to the CFPB. That group skews young, and plenty of Gen Zers haven’t opened a card at all.
No card means no card debt, which quietly drags the generation’s average down. Some of that “low debt” is really just missing data.
Many choose debit cards on purpose
Gen Z is also opting out of credit deliberately. In a U.S. News & World Report survey, younger adults preferred debit over credit more than older generations did. The top reasons they gave were avoiding debt and seeing their spending clearly.
More than 20% of Gen Z said they never use a credit card at all. So part of the low balance is genuine, principled debt aversion.
Some of the debt just moved to BNPL
Gen Z loves buy now, pay later (BNPL) plans. During the 2024 holidays, 54% of Gen Z used BNPL at checkout, according to J.D. Power. Only 50% reached for a credit card, the first time BNPL pulled ahead for that group.
Most BNPL plans still don’t show up on a standard credit report. Providers usually run only soft credit checks and have kept the loans off the bureaus. That’s slowly changing as FICO folds BNPL into its scoring. For now, it’s real debt that mostly doesn’t count as “credit card debt.”
The bigger picture: card debt is rising for nearly everyone
Credit card debt is climbing across nearly every generation, not just Gen Z. The average American now carries $6,610 in credit card debt. Total U.S. card debt reached $1.263 trillion in the second quarter of 2026.
Gen Z sits at the low end for now, but its balances are rising fast — up 87% since 2016. No generation is truly pulling away from debt; some just started later.
Wherever you land on that curve, the interest math is the same. Carrying a balance at today’s rates drains money every month. A 0% intro APR card pauses that interest, so every payment goes straight to the balance.
Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2028
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
