Houston’s young adults face 8th highest credit card delinquency in U.S.

HOUSTON — A new study reveals that young adults in the Houston metro are among the most at risk for serious credit card delinquency in the United States.

Upgraded Points reviewed data from the Fed regarding debt that was delinquent after 90 days.

According to the latest data from the Federal Reserve Bank of Philadelphia, 18.3 percent of credit cardholders aged 18 to 34 in the Houston-Pasadena-The Woodlands metro area are at least 90 days past due on their credit cards. That’s the eighth-highest share among large U.S. metros during the first quarter of 2025.

And it’s not just missed payments — it’s how much debt they’re carrying:

• Average credit card debt: $4,257
• High credit utilization: 40.6 percent of young adults in Houston are using more than 75% of their available credit.

Several factors are fueling the rise in delinquencies among 18- to 34-year-olds:

• They’re earlier in their careers, with limited savings and lower income.
• The entry-level job market remains tight, especially in high-cost cities.
• Student loan payments have resumed, further straining monthly budgets.
• Credit cards are increasingly used for everyday essentials like groceries and gas — not just emergencies.

Houston is far from alone. Across the U.S., serious credit card delinquency among young adults has jumped nearly five percentage points since the pandemic-era low in 2021. The rate now exceeds that of the general adult population.

Southern states are seeing the worst of it:

• In Mississippi, nearly one in four young adults are severely delinquent.
• Louisiana, Arkansas, Alabama, Georgia, and West Virginia all report rates above 21 percent.

By contrast, areas with high-paying jobs and lower living costs — especially in knowledge-based economies — tend to have the lowest rates of delinquency.

Credit card delinquency can have long-lasting effects, damaging credit scores and limiting access to future loans, housing, and even job opportunities.

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