RUTHERFORD COUNTY, TN - For many Tennesseans, credit cards have become a lifeline for daily essentials like groceries, gas, and rent. But for younger adults, the financial picture is looking more grim, with higher delinquency rates and mounting debt. A new analysis by Upgraded Points, using data from the Federal Reserve Bank of Philadelphia, found that Tennessee’s young adults are struggling more than most of the nation — though the impact looks very different depending on where you live. This performance varies the greatest between major cities in Middle and West Tennessee.
Memphis Tops the Nation for Young Adult Credit Card Delinquency - The Memphis metro area ranked worst in the nation for young adult credit card delinquency, with 27.5% of cardholders ages 18–34 more than 90 days overdue — nearly 7 points higher than the next metro. Memphis also faces long-term job growth of just 1.6%, with one-year job growth in the negative at -0.3% and short-term growth even worse at -1.1%. Wages have risen only 28% over five years, lagging behind other Tennessee regions. Combined with one of the nation’s highest poverty rates, it’s a troubling economic picture - See 2024 Memphis Poverty Fact Sheet.
West Tennessee Credit Card Debt Compared to Middle Tennessee Credit Card Debt - In 2025, the share of young adults with severely delinquent debt in the Nashville–Murfreesboro–Franklin MSA stands at 13.4%, compared to 27.5% in Memphis. Back in 2022, the numbers were lower: just 10.4% of young adults in the Rutherford County area carried severely delinquent debt, while 21.2% of young adults in Memphis were in the same situation.
When it comes to credit utilization, the share of young cardholders using 75% or more of their credit limit is 33.5% in the Rutherford County area, compared to a much higher 49.7% in Memphis.
Murfreesboro–Rutherford County: Growth, Wages, and Resilience - The story is strikingly different in Middle Tennessee, where Rutherford, Williamson and Davidson Counties include some of the best performing cities in America. In the Murfreesboro–Smyrna–La Vergne corridor, part of the Nashville–Murfreesboro–Franklin metro, job growth has been a bright spot: 14% over the long term, 2.9% in just the past year, and nearly 1% short-term. Wages in Rutherford County are also booming, growing by 47.1% in five years and 7.4% in the past year alone. For more, see "Best Performing Cities."
Equally important, Rutherford County households show resilience: more than 70% live within their means with affordable housing, compared to just 66% in Memphis. The area’s combination of affordability, wage growth, and steady job creation makes it a safer economic environment for young adults trying to manage debt.
Nashville and Franklin Continue Steady Expansion - Neighboring Nashville and Franklin also benefit from diverse job markets and continued in-migration. Though higher costs of living remain a challenge, wage growth and economic diversity provide young adults with more tools to manage debt compared to their peers in West Tennessee.
Tennessee’s Broader Picture - Across the state, 18% of young cardholders are severely delinquent, compared to 15.5% nationwide. The average Tennessee young adult carries $3,825 in credit card debt, with nearly 40% utilizing over 75% of their available credit. While Tennessee fares worse than the national average, the Middle Tennessee corridor is clearly better positioned to weather financial stress than West Tennessee.
As student loan payments return and inflation lingers, Tennessee’s regional disparities in wages, job growth, and financial resiliency will shape whether young adults can dig out of debt — or sink further behind. For more, see: Cities Where Young People with Credit Card Debt.
