Young Adult Credit Card Delinquencies Surge To Alarming Levels

Credit card debt delinquencies among young adults have reached alarming levels across the United States, with thousands of cardholders aged 18 to 34 struggling with severely overdue payments.

The financial strain reflects a broader national crisis affecting millions of Americans who increasingly rely on credit cards for basic necessities, like groceries and gas amid historic inflation, and the highest annual percentage rates in decades. Young adults face particular challenges as they navigate early career stages with limited savings, a difficult job market and the resumption of federal student loan payments.

Researchers at Upgraded Points, a company that provides advice on credit cards and financial products, analyzed the most recent data from the Federal Reserve Bank of Philadelphia.

The analysis examined more than 380 U.S. metropolitan areas and all 50 states, comparing the percentage of cardholders ages 18 to 34 with severely delinquent credit card debt between the first quarters of 2022 and 2025.

Southern states dominate the list of areas with the highest delinquency rates. Mississippi leads all states with nearly 24% of young cardholders in severe delinquency, followed by Louisiana, Arkansas, Alabama, Georgia, and West Virginia, which all exceed 21%.

At city level, the Upgraded Points study found that 27.5% of young credit cardholders in Memphis have accounts at least 90 days overdue. Atlanta follows with 20.8% of young adults severely delinquent on their payments, while Jacksonville ranks third at 20.4%.

Other areas struggling with high youth delinquency rates include Las Vegas at 19.9%, Birmingham at 19.3%, Riverside, California, at 19.0%, Orlando at 18.7%, Houston at 18.3%, Tucson at 18.1% and Cleveland at 18.0%.

Cities with low delinquency rates tend to feature strong job markets with above-average wages. Boston ranks fourth nationally with a 9.4% severe delinquency rate, most likely benefiting from its concentration of universities and economy focused on healthcare, education and finance.

Due to stimulus payments and student loan forbearance, severe delinquency rates hit historic lows in 2021, but has jumped nearly five percentage points in under four years. The delinquency rate for young adults now sits more than two points above the rate for all adults.