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Wealthy Not Immune to Credit Card Debt as Costs Soar
23 Aug
Summary
- 62% of individuals earning over $300K carry credit card debt
- Lifestyle creep and inflation erode budgets for high earners
- Unplanned expenses like medical bills strain even strong incomes
As of August 23rd, 2025, a concerning trend has emerged - even high earners are not immune to the burden of credit card debt. According to a recent report, 62% of individuals making more than $300,000 per year are carrying a credit card balance.
This finding challenges the common assumption that a six-figure income would guarantee financial freedom and stability. The culprit appears to be a combination of factors, including lifestyle creep, where spending rises alongside income, as well as the relentless impact of inflation on essential costs like groceries, gas, and housing.
Beyond lifestyle factors, unplanned expenses such as medical bills and home/car repairs can also overwhelm even the strongest of incomes. Data shows that 23% of adults faced major unexpected medical costs in the past year, with 15-18% still carrying medical debt. Even with insurance, these emergencies can be financially devastating.
Additionally, the volatility of the stock and real estate markets has not spared the wealthy, as their heavy investments in these assets can shrink dramatically when the markets decline. Ultimately, the combination of lifestyle inflation, rising costs, and market uncertainty has trapped even high earners in the cycle of credit card debt.
