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- calendar_today October 21, 2026
Surge in Credit Card Spending Led by Younger Generations
Gen Z and millennial customers contributed to the fastest growth in credit card spending at Synchrony Financial during the third quarter, according to the company’s recent report. The financial institution noted that its purchase volume rose 8% to $49.7 billion, with younger consumers driving the most significant increases. The trend aligns with ongoing pressures on affordability as households face rising living expenses and higher borrowing costs.
Cost of Living Squeeze Influences Spending Patterns
Federal Reserve research indicated that nearly half of Americans under 30 received financial assistance with expenses in 2025, underscoring the extent of current financial challenges. Synchrony CEO Brian Doubles observed that spending was up across customer generations and categories, but the most pronounced growth occurred among younger clients. Notably, double-digit growth was seen in spending beyond Synchrony’s retail network, especially on both essential and discretionary purchases such as those at gas stations, electronics retailers, and discount stores.
Statements from Synchrony Leadership
Brian Doubles, CEO of Synchrony Financial, emphasized the company’s role in delivering valuable and flexible products amid a shifting economic landscape. “Synchrony’s products and experiences resonate because of the everyday utility and enduring value we provide, particularly in a dynamic environment. Investments in our multi-product suite, distribution network and digital capabilities are embedding our capabilities across the evolving frontier of commerce,” Doubles stated. He added, “We are empowering tens of millions of customers with financial flexibility, driving loyalty and sales for hundreds of thousands of merchants, partners and providers across the country, and generating attractive, risk-adjusted growth and significant long-term value for our stakeholders.”
Affordability and Debt Burden for Young Americans
The rising cost of living is taking a toll on young Americans. Nearly one-quarter of individuals between 18 and 29 failed to pay all their bills in full during the month before the survey cited. Housing affordability presents another challenge, with home prices increasing 54% nationally since 2020, according to Harvard University’s Joint Center for Housing Studies. Nearly half of renter households spent over 30% of their income on housing at last count. In September, consumer prices rose 3.7% year over year, while inflation-adjusted average hourly earnings fell 0.7%, data from the Bureau of Labor Statistics showed.
Rising Credit Card Debt and Loan Delinquencies
The gap between financially comfortable Americans and those struggling to keep up is widening. Federal Reserve data revealed that average credit card balances for those reporting difficulties increased by 37%—about $2,530—between 2023 and 2025, while balances for those living comfortably grew only 1% ($59). Debt remains expensive, with the average credit card interest rate reaching 22.36% in August. Among credit card holders aged 18 to 29, 46% carried a balance at least once during 2025.
Synchrony’s outstanding loans grew by 3% to $103.3 billion in the third quarter. However, there was a slight improvement in loan delinquencies: loans at least 30 days overdue declined to 4.34%, down from 4.39% a year prior, and loans at least 90 days past due fell to 2.06% from 2.12%.
Financial Assistance and Outlook
With pressures from the cost of living, housing affordability, and the inflation impact continuing, credit card debt remains an area to watch, especially among younger Americans. Synchrony Financial reports ongoing investment in digital and multi-product capabilities to meet consumer needs across platforms, aiming to provide greater choice and flexibility as economic conditions evolve.
Source: tennesseestar.com.
