Gen X and Credit Card Balances

Members of Generation X are increasingly relying on their credit cards. Recent data from the Federal Reserve reveals that individuals aged 45 to 54 held the highest credit card balances as of 2025, even more than those aged 64 to 75. In contrast, younger millennials are making strides in reducing their debt, with credit card balances for those aged 35 to 44 decreasing.

This information emerges amid financial challenges faced by the often-overlooked middle generation. According to the University of Michigan’s consumer sentiment index, those aged 35 to 54 report the lowest sentiment levels, feeling more pessimistic than both younger or older age groups, just as their credit card debts began to rise.

For the 45- to 54-year-olds, credit card balances adjusted for inflation increased from about $3,300 in 2022 to approximately $5,100 in 2025, overtaking their older counterparts who had previously carried the most debt.

Despite this, individuals aged 45 to 54 are still the highest earners in today’s economy. The Survey of Consumer Finances indicates that their median pre-tax income is nearly $109,000, which is the highest across all age groups and represents the largest median income ever recorded after adjusting for inflation. It appears that Gen Xers are achieving new earnings milestones.

Yet, there seems to be a source of anxiety for the Gen X cohort stemming from relatively stagnant overall wealth, despite high salaries. The median assets of their older counterparts, encompassing stocks, bonds, and retirement accounts, have seen growth since 2022, boosting their net worths. Particularly, the median value of stocks held directly by the oldest Americans has surged by nearly $15,000 since 2022, while stock values for those aged 45 to 54 remain below levels seen in 2019.

This suggests that wealth among Americans isn’t solely determined by income levels. Instead, it appears to be the older generations, particularly those preparing for retirement, who are holding increasing amounts of valuable assets. The median net worth of individuals aged 75 and older jumped from around $366,000 to nearly $505,000, while the 45- to 54-year-old group experienced a decline in their median net worth from about $270,000 to $255,000.

Thus, it seems the wealth gap between generations may not manifest in the paychecks earned but rather in the stock market dynamics. This realization comes during times when Gen Xers are resorting to their credit cards in light of ever-rising costs.