A Third of Americans Have More Debt than Emergency Savings

Bankrate’s 2025 Emergency Savings Report found that 33 percent of U.S. adults have more credit card debt than emergency savings, which is down from 36 percent in both 2024 and 2023. However, the number remains notably higher than the polling between 2011 and 2022, when only 21 percent to 29 percent of Americans had more credit card debt than emergency savings.

“The cost of living continues to rise, prompting more individuals and households to turn to credit cards when in a bind,” said Mark Hamrick, Bankrate’s senior economic analyst, according to The Hill. Data from the Labor Department showed that the consumer price index increased 3 percent from last year.

For the first time since 2022, more Americans reported having increased their emergency savings from one year ago. 30 percent say they have more emergency savings than they did last year, while 27 percent say they have less. The 27 percent that reported less savings is down from 32 percent in 2024, 39 percent in 2023, and 34 percent in 2022.

Just over half of U.S. adults (53 percent) said they have more emergency savings than credit card debt. Alternatively, 13 percent said they have no credit card debt but also no emergency savings. 35 percent of Americans said they are prioritizing both emergency savings and credit card debt, 28 percent are only prioritizing emergency savings, and 24 are prioritizing just credit card debt.

“With more than one-third of Americans prioritizing both emergency savings and credit card debt, it underscores how many households are in the position of having both high-cost credit card debt and being under-saved for emergencies,” said Greg McBride, Bankrate’s Chief Financial Analyst. “Dispatching with costly credit card debt and boosting emergency savings are two big steps toward building a more stable financial foundation.”

Generationally, 50 percent of younger millennials (ages 29-35) said they have more credit card debt than emergency savings, followed by 39 percent of Gen X, 35 percent of older millennials (ages 36-44), 27 percent of Gen Z, and 13 percent of older baby boomers (ages 71-79). Also, Gen Z is the most likely to have neither credit debt nor emergency savings at 24 percent.