Credit Card Debt Surpasses Emergency Savings for One-Third of Americans
Credit Card Debt vs. Emergency Savings: A Growing Concern
In a striking revelation from Bankrate's 2025 Emergency Savings Report, one-third of U.S. adults now report having more credit card debt than emergency savings. Although this figure has decreased from 36% in prior years, it remains significant, particularly among the millennial demographic.
Millennials' Financial Struggles
Millennials are notably hit hard by this trend, with a staggering 42% indicating they face more debt than savings. This demographic's financial challenges are exacerbated by rising costs of living, which leave many resorting to credit cards for unexpected expenses.
- 73% of Americans are saving less money for emergencies.
- Comparison shows a rise from just 22% of Americans in 2022 facing similar challenges.
Economic Implications
Mark Hamrick, senior economic analyst at Bankrate, highlighted that the consumer price index saw an increase of 3% year-over-year, emphasizing that financial pressures are leading households to rely more on credit options.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.