Millennials owe an average of $4,930 in credit card debt, according to the latest data from credit bureau Experian.
But in some places, the average amount of credit card debt for millennials, who are between the ages of 26 and 41, is even higher.
In Alaska, for example, millennials have an average balance of about $5,388, according to Experian’s 2021 study, the most recent data available at the state level.
And despite California being one of the most expensive states to live in by 2022, it’s not in the top 10 places where Millennials have a lot of credit card debt.
Here’s a look at the places where millennials have the most credit card debt on average as of 2021.
While the current economic climate makes it difficult for many people to pay off their credit card debt, it is especially difficult for younger consumers because they earn less money than older age groups, said LendingTree’s lead credit analyst. Matt Schulz told CNBC Make It. ,
“Maybe they have a student debt. They don’t have much savings to fall back on. They probably don’t have excellent credit, which means they have loans that can yield high interest rates,” he says. .
At the same time, researchers at the New York Federal Reserve wrote in their most recent report, “With prices up 8% from a year ago, it’s perhaps not surprising that balances are rising.”
how to deal with credit card debt
If you’re trying to pay off credit card debt, it’s best to create a budget that tracks your spending.
“You can’t make a meaningful plan for dealing with credit card debt if you don’t know how much is coming in and going out of your household each month,” says Schulz.
While there’s no one-size-fits-all way to pay off credit card debt, there are some time-tested methods that can work.
If you’re motivated by small, early wins, try the snowball method, says Schulz. With this strategy, you pay off your smallest balance first, which may also motivate you to continue paying off your larger balance.
If you want to receive the least amount of interest, try the avalanche method, says Schulz. With this strategy, you pay off the credit card with the highest interest rate first so that interest charges don’t keep piling up, then move on to the second highest interest rate, and so on.
Remember, there’s no wrong way to pay off credit card debt as long as you have a plan.
“The best approach for you is the one that motivates you the most and sticks with you the longest,” says Schulz.
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