Millennials overwhelmed by credit cards, student loans and mortgage debt

0

Millennials are feeling the debt burn, and it’s more than student loans.

This is what the recent findings of a new survey by Insider and Morning Consult reveal. The survey asked 2,096 Americans about their financial health, debt, and income for a new series, “The State of Our Money.” More than 670 respondents were millennials, defined as 23 to 38 years old in 2019.

Just over half of Millennials have credit card debt. Of those with credit card debt, more than half owe less than $ 5,000 and almost a quarter owe between $ 5,000 and $ 10,000.

But a mortgage is usually the biggest debt for millennials. Among millennials with a mortgage (27.7%), 23% owe $ 50,000 to $ 100,000, and half owe more than 100 $ 000.

In fact, almost as many millennials have a mortgage as those with undergraduate student loan debt (28.4%). Just over half owe between $ 5,000 and $ 30,000 on their undergraduate student loans. Not to mention the debt of postgraduates, which 11% of millennial respondents have.

Read more: More than half of millennials have credit card debt, and this reflects a financial reality other generations haven’t faced

These debt loads make sense given that house prices and tuition fees have skyrocketed over the past 40 to 50 years. College tuition fees in particular have more than doubled since the 1980s. A recent report from SuperMoney analyzed data from the United States Federal Housing Agency and found that the median price of home sales had increased. by 39% since the 1970s.

Meanwhile, national health care costs per person increased by $ 9,000 during the same period, according to the report’s analysis of national health expenditure data. This could partly explain why nearly a quarter of Millennials have had to incur personal debt or a line of credit or medical debt, according to the Insider survey and Morning Consult.

And 41% of millennials have a car loan – more than 34% of all respondents, according to the survey. One-third of millennials with a car loan owe between $ 10,000 and $ 20,000.

Car prices have also increased over time, but not so drastically – from November 2006 to November 2016, new car prices increased 5%, according to the Bureau of Labor Statistics. The fact that more millennials are in car loan debt could be because Gen X and Baby Boomers have already paid off their car loans.



Source link

Leave A Reply

Your email address will not be published.