Gen X Optimism Masks Growing Credit Card Debt

Consumers remain optimistic about their finances, but Gen X is showing some of the clearest signs of financial strain.

Fifty-five percent of consumers feel optimistic about their household finances over the next 12 months, according to the Q2 2026 Consumer Pulse study from TransUnion.

The share was unchanged from Q2 2025, showing consumer optimism held steady from a year earlier. Pessimism is also on the decline. Financial pessimism fell to 23%, down from an all-time high of 27% in the second quarter of 2025.

When it comes to being optimistic, it is no surprise that the younger generations are leading the way. Sixty-eight percent of Gen Zers and 63% of millennials feel optimistic about their financial futures. 

The older generations are less so. Fifty-two percent of Gen Xers are optimistic and only 44% of baby boomers have a positive outlook about their household finances in the next 12 months.

Optimism Despite Financial Challenges

“Affordability has become the defining issue shaping consumer finances today, yet consumers remain remarkably resilient,” said Charlie Wise, Head of Global Research and Consulting at TransUnion.

 “Against a backdrop of ongoing pressure from inflation and higher everyday expenses such as filling up their gas tanks or dining out, consumers remain optimistic about their future finances and are less pessimistic than a year ago.”

Low unemployment is helping to buoy consumer optimism.

“Steady, low unemployment is supporting that confidence, even as wage gains are partially offset by higher prices,” Wise said.

Gen X Feels Pressure

Despite feeling optimistic, consumers are still feeling the pressures of inflation. And Gen X and baby boomers have higher levels of concerns about inflation than younger generations. 

Gen X, in particular, found gas, travel-related purchases, dining out and every other purchase type listed on the survey as “unaffordable.”

“Several factors likely contribute to Gen X affordability angst, particularly the ‘sandwich generation’ dynamic of supporting children while caring for aging parents, which may put greater strain on their household budgets,” Wise said.

Food and gas prices were the top inflation worries overall. Eighty percent of consumers ranked grocery prices as the top concern while 71% of consumers pointed to gas prices. 

Fewer Plans for New Credit

Only 28% of consumers plan to apply for new credit or refinance an existing credit account. This is down from 33% of consumers in the second quarter of 2025. 

This decline covers all generations but is most pronounced with Gen Zers and millennials. Both generations’ plans for credit dropped five percentage points from a year ago. But even with this drop, 45% of Gen Z and 45% of millennials plan to apply for credit. 

“While consumers report less interest in applying for or refinancing credit, our proprietary data shows demand remains healthy,” Wise said. 

“At the same time, consumers often take on more credit during periods of economic pressure as a safeguard against potential shocks such as job loss. Encouragingly, many still report optimism about their financial outlook.”

Higher Credit Card Balances for Gen X

That affordability pressure also shows up in credit card balances. The average credit card debt for Gen Xers is $9,600, according to Experian. Millennials follow with $6,961 in credit card debt. Baby boomers are next with $6,795 in card debt. And Gen Zers are much lower with $3,493 in balances.

Why do Gen Xers carry so much more credit card debt than other generations? Being part of the “sandwich generation,” raising children while caring for aging parents, may help explain some of the financial strain facing Gen X consumers, though Experian does not directly tie the generation’s higher card balances to caregiving costs.

Plus, some older Gen Xers may be past their peak earning years. Making due on lower incomes and facing growing credit card balances may be a financial challenge for these Gen Xers as they advance into their senior years.

Retirement Crunch Ahead for Gen X

Here’s some more challenging financial news for Gen Xers. Gen X investors surveyed by Natixis had median retirement savings of $150,000. Between credit card debt and lagging retirement savings, Gen Xers have a lot on their plate. 

For Gen X consumers, the numbers point to a difficult balancing act: managing high-interest credit card debt while trying to catch up on retirement savings.

Paying down credit card balances may free up room for longer-term savings, but inflation and family obligations could make that easier said than done.