Credit card debt can limit where you can live, the people you can date and where you can work. Because of that, struggling with credit card debt can often come with feelings of shame and anxiety. It’s not something people like to talk about.
It can be hard to tell who has credit card debt because it’s a taboo topic. It’s easy to make assumptions. Perhaps, people with low incomes use credit cards more than those with higher incomes. Or maybe inexperienced younger credit card users get into debt more than experienced older generations.
If those generalizations sound plausible, you may be surprised by a NerdWallet survey of more than 2,000 U.S. adults, conducted online by The Harris Poll in November 2025.
Myth #1: Affluent households struggle less with credit card debt.
The reality: Household income is a poor predictor of credit card debt: 37% of Americans with household incomes below $50,000 say they currently have revolving credit card debt, as do 37% of Americans with household incomes of $100,000 or more, according to the November survey.
The share of those with credit card debt is similar for other household income ranges:
- 40% of households with income between $50,000 and $74,999.
- 42% of households with income between $75,000 and $99,999.
The takeaway: Income doesn’t make you immune to credit card debt
If you make good money but haven’t yet built up wealth, the barrier between you and credit card debt may be thinner than you think. A job loss or unexpected expense can punch a hole through your feeling of financial security.
That reminder comes at a conspicuous time. More and more people with high incomes have been seeking the help of credit-counseling agencies, according to The Wall Street Journal. Credit card debt delinquency rates also have been rising, according to data from the Federal Reserve Bank of New York.
Myth #2: Credit card debt is likely due to overspending on unnecessary things.
The reality: When Americans named the expenses that contributed to their credit card debt, three of the four most commonly cited expenses were needs, not wants:
- 53% of those with credit card debt say necessities (e.g. housing, transportation, food, basic clothing) contributed to the debt.
- 37% say shopping (beyond the basics) contributed to their debt.
- 34% say medical expenses contributed to their debt.
- 34% say home or car repair contributed to their debt.
The takeaway: Yes, spending on non-essentials has led to credit card debt for some Americans. But on many occasions, debt is used for something essential — weekly groceries or a visit to the doctor.
Sticking to a budget can help curb overspending. But even financially diligent Americans face rising costs and unexpected expenses. One of the first financial goals anyone should have is building an emergency fund.
» MORE: How to save when money is tight
Myth #3: Younger people are prone to credit card debt.
The reality: Credit card debt is not a folly of youth.
Consider the share of each generation who carried debt on multiple credit cards:
- 23%: Gen Z (ages 18-28)
- 35%: Millennials (ages 29-44)
- 36%: Gen Xers (ages 45-60)
- 45%: Baby boomers (ages 61-79)
…or the share of each generation whose credit card debt increased last year:
- 23%: Gen Z (ages 18-28)
- 33%: Millennials (ages 29-44)
- 31%: Gen Xers (ages 45-60)
- 24%: Baby boomers (ages 61-79)
The takeaway: Whatever your age, whatever your income, know that people similar to you have credit card debt. Knowing you’re not alone in that struggle may be the encouragement you need to work toward a debt-free future.
For those who are debt-free, it’s a good reminder that debt could be affecting someone you wouldn’t expect.
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