5 Cities Where Gen Zers Have the Most Credit Card Debt

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Various forms of debt can serve positive financial purposes, but credit card debt isn’t generally one of them. Unfortunately, it’s far too common for Americans to carry high-interest credit card debt, which has an average interest rate of 21.76%, according to the Federal Reserve Bank of St. Louis.
This is the type of debt that’s typically used for personal consumption, not investment, and it can rapidly spiral out of control, with interest rates that can double a balance in less than three years.
Credit card debt can be a particular problem for Gen Zers, or those who are roughly 18-26 years of age. This is for two main reasons.
First, Gen Zers don’t have as much financial experience that they can use to help keep their debt under control — and some may not even understand what a financial albatross credit card debt can be. Second, Gen Zers are relatively new to the workforce, meaning they aren’t likely earning the highest salaries. Trying to eke out an existence on a low salary can force some individuals into debt, and it can make it that much harder to pay off any debt that they incur.
Of course, lifestyle can also play a big role in terms of credit card balances. Those who live in bigger cities often face higher costs and the pressure to “keep up with the Joneses,” both of which can make it easier to fall into debt.
To get a snapshot of the current state of debt in America, LendingTree analyzed anonymous data from over 428,000 users in the 100 largest U.S. metros to locate areas where non-mortgage debt is a problem. Data was broken down across four generations: baby boomers, Gen X, millennials and Gen Z. Here’s a look at the five top cities where Gen Zers have the most credit card debt, along with a breakdown of how the debt picture looks for this youngest adult generation.
Also, read about the debt myths no one should believe.
Oxnard, California
- Median balance: $3,619
- Percentage with debt: 90.6%
Oxnard is a seaside city of 200,000 residents between Los Angeles and Santa Barbara. Oxnard’s medium income is about 20% above the national average, but that doesn’t prevent Gen Zers there from falling into debt.
While the median amount of credit card debt Gen Zers have in the 100 largest metro areas is $2,076, Oxnard’s Gen Zers have about 80% more credit card debt, with 9 out of 10 carrying revolving debt.
Bridgeport, Connecticut
- Median balance: $3,234
- Percentage with debt: 88.8%
Generally speaking, Connecticut is a relatively expensive place to live, and Bridgeport is no exception. The annual cost of living, according to Sperling’s BestPlaces, is over 38% above the national average. This can make it a difficult place for younger generations, like Gen Z, to begin their financial lives — one of the reasons why nearly 90% of Gen Zers in the city carry debt.
But those younger generations may have something to look forward to as they become more established in their careers: Housing costs are actually about 7% below the national average, offering something of a financial break for first-time homebuyers.
Cape Coral, Florida
- Median balance: $3,046
- Percentage with debt: 86.0%
The cost of living in Cape Coral is about 7% above the national average, and housing prices are about 15% above the U.S. average, according to Flyhomes. If you want to “live comfortably” as a single person in Cape Coral, you’ll need a pre-tax income of about $122,000.
As this is well above the national average, it’s perhaps not surprising that Gen Zers, just starting out in their careers, may have to work hard to stretch their paychecks — with 86% of them falling into debt.
El Paso, Texas
- Median balance: $2,935
- Percentage with debt: 83.7%
At first glance, it may seem like it’s easier to avoid falling into debt in El Paso, as the cost of living there is so low. Overall, costs are 12% lower than the national average, and housing is particularly affordable, costing about 70% of the national average, according to PayScale.
Unfortunately, credit card debt levels for Gen Zers are about 41% higher than the average among their peers in the country’s top-100 metros. Low incomes in the city might be a factor, as the median household income is about $53,000.
Los Angeles
- Median balance: $2,903
- Percentage with debt: 88.5%
Los Angeles is the second-most populous city in the entire United States, and it has a wide range of neighborhoods, from the affluent to the poor. The cost of living in Los Angeles is about 50% higher than the national average, with some areas even more expensive, so no matter what part of the city you’re in, it’s likely to be difficult to afford in your early career. It’s also the home of glitz and glamor in the U.S., meaning there’s more of a sense of keeping up appearances in many areas of the city.
All of these factors likely contribute to the fact that Gen Zers in Los Angeles have a tough time avoiding credit card debt.
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