Credit card debt in the United States has reached a staggering $1.2 trillion by the end of 2024, reflecting a significant financial challenge for many consumers. This figure was revealed in a recent report from the Federal Reserve Bank of New York, indicating a growing reliance on credit as economic conditions evolve.
In conjunction with this news, the Federal Reserve announced a reduction in its benchmark interest rate by a quarter percentage point, bringing the new rate to a range of 4% to 4.25%. While this decrease is welcomed by many borrowers, financial analysts from Bankrate caution that the change may not drastically affect annual percentage rates for credit card holders. Notably, credit card balances soared by $27 billion in June alone, upping the total outstanding debt to approximately $1.21 trillion.
Despite these challenges, there is some potential for relief. Federal Reserve officials have indicated the possibility of two additional rate cuts later in the year, which may provide further opportunities for borrowers to access lower interest rates.
Demographic data highlights the disparities in credit card debt across different age groups. Americans between the ages of 40 and 49 bear the heaviest burden, holding approximately $283.7 billion in credit card debt—an increase of 9.1% from the previous year, which is the most significant rise among all age cohorts. Meanwhile, individuals aged 18 to 29 carry the least credit card debt, totaling $90.9 billion, which has seen a modest annual increase of 1%.
The Federal Reserve Bank of New York regularly publishes reports on U.S. household debt and credit, with credit card balances being assessed annually as of December 31. Prior to 2004, these reports did not provide an age-specific breakdown of debt, making current data particularly noteworthy for understanding trends over time.
As of June 2025, early indicators show a decrease in credit card debt among younger age groups, including those aged 18 to 29, 30 to 39, 40 to 49, and 50 to 59. Conversely, slight increases in debt were reported for individuals aged 60 to 69 and those over 70. Final data expected in December 2025 will provide a clearer picture of whether these trends persist.
Comparisons to historical data reveal significant shifts in credit card debt over the past two decades. In 2004, those aged 70 and older held the lowest credit score debt, totaling $46 billion. By 2024, this demographic saw their debt grow to $143.7 billion. Conversely, adults aged 18 to 29, who now hold the lowest credit card debt at $90.9 billion, have seen a notable rise from $61 billion in 2004.
As interest rates fluctuate and debt levels change, American consumers continue to navigate the complexities of credit utilization in an evolving economic landscape.
