Are millennials building up a mountain of debt?
New York (CNN) — Americans — particularly Millennials and those with lower incomes — are becoming increasingly overextended financially: Credit card and auto loan delinquencies have not only surpassed pre-pandemic levels, they're the highest they've been in more than a decade.
King said millennials' purchasing preferences and the soaring cost of living has led many into "a vicious cycle of taking on more debt." Many were "forced" to rely on credit cards and loans to meet their needs, adding to their "crippling debt pile."
Of all generations, there's one that has more debt than the rest: Generation X. A Generation X consumer must work, on average, almost four full years to pay off all outstanding debts, compared to 3.3 years for millennials and two years for Gen Z, the youngest generation, and slightly more than baby boomers and seniors.
| Type of debt | Average amount |
|---|---|
| Mortgage | $295,689 |
| Credit card | $6,274 |
| Total non-mortgage* | $29,702 |
| Generation | Average total debt (2023) | Average total debt (2022) |
|---|---|---|
| Gen Z (18-26) | $29,820 | $25,851 |
| Millenial (27-42) | $125,047 | $115,784 |
| Gen X (43-57) | $157,556 | $154,658 |
| Baby Boomer (58-77) | $94,880 | $96,087 |
Close to half of respondents report feeling hopeless about their financial situation. Many factors are at play, including income, debt, dwindling savings, and poor financial choices. Close to 75% of millennial women and 70% of all those surveyed say they struggle to make ends meet with their current salary.
| Generation | Average Credit Card Balance March '22 | Average Percent Increase |
|---|---|---|
| Baby Boomer | $5,700 | 19% |
| Gen X | $6,400 | 39% |
| Millennial | $4,500 | 49% |
| Gen Z | $2,000 | 65% |
The World Happiness Report is out and Finland has once again been declared the happiest country in the world. However, the report reveals that Gen Z (aged 15-24) are unhappy.
Younger American (millennial and Gen Z) families represented 33.1% of households and owned 9.3% of total family wealth (72% less wealth) in 2023. The baby boomers' shortfall was the smallest of the generations. SOURCES: Distributional Financial Accounts and Institute for Economic Equity calculations.
Gen Z faces unique financial challenges compared to older generations. College graduates earn 10% less compared to their parents, recent research found. High inflation — and affordability concerns among Gen Zers — extend beyond U.S. borders.
At what age are people debt free?
A good goal is to be debt-free by retirement age, either 65 or earlier if you want. If you have other goals, such as taking a sabbatical or starting a business, you should make sure that your debt isn't going to hold you back.
The average Millennial salary is about $47,034, according to the U.S. Census Bureau. The average Millennial household makes $69,000 a year, according to the Pew Research Center.
The average amount is almost $30K. Some have more, while others have less, but it's a sobering number. There are actions you can take if you're a Millennial and you're carrying this much debt.
A majority, 65%, say they live paycheck to paycheck, according to CNBC and SurveyMonkey's recent Your Money International Financial Security Survey, which polled 498 U.S. adults. That's a slight increase from last year's results, which found that 58% of Americans considered themselves to be living paycheck to paycheck.
Stats from 538.com, for example, suggest the age is around 63. As each homeowner is unique, though, this type of information should only be used anecdotally. You should always stick with the financial plan that is tailored to your own objectives and personal situation.
But with nearly two-thirds of retirement-age Americans having paid off their mortgages, it means that the average age they have gotten rid of that debt is likely in their early 60s. Stats from 538.com, for example, suggest the age is around 63.
Millennials were somewhat better off than Gen X—those born between 1965 and 1980—when they were the same age. Zoomers, however, are much better off than millennials were at the same age. The typical 25-year-old Gen Z-er has an annual household income of over $40,000, more than 50% above baby-boomers at the same age.
Millennials stand to become the richest generation in history, after $90 trillion wealth transfer. Millennials are set to inherit as much as $90 trillion in assets before 2044, a new report shows.
- Cancel Culture. ...
- College Debt. ...
- Aging Parents. ...
- Discrimination. ...
- Substance/ Alcohol/ Sex Addiction. ...
- Violence/ Bullying. ...
- Less Human Interaction. ...
- Mental Health Issues.
Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more.
Who has the most debt in America?
Gen X has the highest average debt balance in all categories, except for personal loans. Here's the breakdown: Credit cards: Gen X have the highest credit card balance compared to other age groups, at $8,215. Auto loans: Gen X have the highest auto loan balance, at $21,570.
The average American in 2023 carried $21,800 in personal debt (excluding mortgages), a whopping $8,000 less than what Northwestern Mutual recorded in 2019.
Key points. New research shows Millennials and Gen Z exhibit loneliness and alienation more than other generations. It is possible to be technologically "connected" and socially disconnected simultaneously.
Designed to gauge Gen Z's sentiment around the future of work as they enter the workforce, the EY survey found that this generation is eager for innovation and accepts that failure will likely be a part of the process.
Young adults in America like Hannah are reporting higher stress levels than older generations, with 18- to 34-year-olds saying their average stress level is a 6 out of 10, compared with a 3.4 among people ages 65 and older, APA's 2023 Stress in America survey found.
