The majority of debt being carried by most Americans involves mortgage debt. However, a recent analysis indicates that most Americans carry thousands of dollars in debt beyond their home loans. New research from LendingTree sheds light on the debt burden carried by different generations in the United States. The study reveals a clear trend: younger generations are carrying more non-mortgage debt than their predecessors. We breakdown each generation below.
Debt breakdown by generation
Gen Z: Starting out in debt: While Generation Z (born 1997-2005) has the lowest overall debt amount ($16,562 median), their debt is growing rapidly. This is likely due to factors like increased reliance on student loans and personal loans for major purchases.
Millennials: Mired in Student Loans: Millennials (born 1981-1996) hold the distinction of being the most likely generation to have student debt (38.4%). While their median student loan balance ($24,112) is lower than Gen X’s, they face a larger overall debt burden ($30,558 median).
Gen X: Shouldering the Highest Debt: Gen X (born 1965-1980) carries the heaviest non-mortgage debt load ($33,859 median). This could be due to factors like taking on car loans and credit card debt to raise families during a period of rising costs. Interestingly, Gen X also has the highest median student loan balance ($31,066).
Baby Boomers: Paying Down, But Still in Debt: Baby Boomers (born 1946-1964) are the only generation to see a decrease in overall debt since 2021. However, they still hold a significant amount of non-mortgage debt ($18,779 median). Interestingly, they have the lowest student loan delinquency rate, but the highest median personal loan balance ($5,363).
Summary
The LendingTree study paints a clear picture: debt is a major issue for all generations in the United States. While younger generations are starting out with more debt, Gen X is grappling with the highest overall burden. The reasons for this vary, but the impact is undeniable. Of course, carrying debt creates significant challenges for homeownership.
If you’re struggling with debt, there are steps you can take to get back on track. Consider consolidating your loans, creating a budget, and exploring debt repayment options. Remember, you’re not alone – many resources are available to help you manage your debt.
Are you thinking about buying or selling real estate in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, don’t forget to download the free Florida Home Search app for your mobile device.
