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Since the pandemic, consumers have been spending more on their credit cards, amassing a record $1.21 trillion in credit card debt in the second quarter of 2025. However, despite the increased credit card debt, there has been an increase in debit card transactions, outpacing credit card growth. This shift in consumer spending highlights the economic pressures impacting Americans and how they manage their money.
According to an article from Dale Erling at IntelliPay, debit card spending rose 6.57% compared to credit card spending at 5.65% in the first six months of 2025. “This reversal marks the end of an era where credit card spending grew more than seven times faster than debit card spending in 2022,” Erling states in the article.
Given recent economic changes such as inflation and the resumption of student loan payments, consumers are growing more cautious about taking on any new debt, especially younger consumers. In an article from The Atlantic, author Michael Waters shares how the shift in spending has been more closely associated with Gen Z consumers, given research into the subject matter.
In the article, ‘The Debit-Card Rebellion,’ Waters highlights how research shows that consumers limit their spending when using debit cards given the fact that debit cards link to real money, while credit cards perpetuate a hazy view of money for consumers. The article highlights a survey conducted last year by PYMNTS where, of the 2,552 consumers surveyed, 14% of users said they used their debit cards for online purchases in order to stay within their budgets. This choice is highlighted as particularly popular for Gen Z consumers in another study by The Center for Generational Kinetics, with nearly a quarter of those surveyed sharing they aim to avoid debt at all costs.
Despite the spending shift, credit card debt is still a prevalent issue for consumers, with 71% of consumers sharing that debt has prevented them from pursuing savings and investing efforts. Erling shares that 21% of people reported being very stressed about their credit card debt, and nearly one in three people expect to have more credit card debt by the end of 2025.
As Americans lean into debit card spending over credit cards and new debt, consumers will work to rein in spending and decrease their debts. However, sometimes the debt burden is far too much to bear and consumers may need to look to other options for repayment and managing debt. If you are experiencing higher debt burdens and are wondering what your next steps should be, the attorneys at Sader Law Firm are here to help figure out if bankruptcy might be the right option for you. Contact us at (816) 561-1818 for a free phone consultation and to learn more.
