The majority of U.S. millennials (72%) have around $117,000 in non-mortgage debt, making it difficult to save and plan for the future. Recent research.
Real Estate Witch surveyed 1,000 millennials (the generation born between 1981 and 1996) about their household finances, savings and credit history, and found that these debt holders were unable to pay their basic expenses. I said I was having a hard time.
For example, 27% of those surveyed said they couldn’t afford gasoline, 29% said they couldn’t pay their mortgage, and 27% said they couldn’t afford medical bills.
The majority of survey respondents said they believed they could pay off their debts within five years. However, 1 in 10 of the respondents said she thought it would take at least 10 years to pay off the debt, and 1 in 16 said she could not pay off the debt.
“This generation’s debt burden can also make it more difficult to afford any expenses such as vacation (45%) that could improve quality of life,” said Real Estate Witch. “It may also explain why millennials are slower to reach traditional markers of adulthood, such as having a family.”
If you’re struggling financially, you can consider taking a personal loan to pay off high-interest debt at a low interest rate and save money every month. Visit Credible to see personalized interest rates without affecting your credit score.
Credit card debt comes to the top
The survey found that credit card use is the number one cause of debt among millennials, with 67% of respondents having an average balance of $5,349.
Credit card debt soars will grow by $46 billion (13%) by the end of the second quarter of 2022, the largest increase in more than 20 years, according to the company. Federal Reserve Bank of New YorkIn addition to credit card balances, Americans opened 233 million new credit card accounts in the second quarter. This is the largest since 2008.
More than a quarter (29%) of survey respondents reported not paying their credit card bills in full each month, and 23% of delinquent borrowers owe more than $10,000 .
“Credit card debt tends to increase with age among millennials,” said the Real Estate Witch study. At $6,048, it’s about 20% more than younger millennials.”
If you need help paying off your credit card debt, you can consider consolidating it with a low-interest personal loan to save you money each month. Visit Credible to see personalized interest rates without affecting your credit score.
Student loan debt adds to intergenerational financial problems
Student loans are the second largest source of debt for millennials, cited by 48% of survey respondents as a reason for their financial hardship.
Studies show that people with student loans have a much higher debt burden than those with outstanding credit card bills. More than half (54%) of millennials with student loans have debts between $10,000 and $99,999, and those studying advanced degree programs (12%) have outstanding debts between $100,000 and $199,999. reported that there is The survey also said that 40% of millennials taking out student loans don’t know the interest rate on their debt.
“Millennials with student loans may find it harder to start a family, buy a home, and save for retirement than those without debt,” said Real Estate Witch. I’m here. “Of those who are currently debt-free, more than 1 in 4 (28%) of them said it was because they never took out a student loan.”
Millennials with Education Debt Can Get Help Through Student Loan Relief Plans Announced by President Joe Biden In August. The Biden administration has announced that it will cancel student loan debt of $20,000 per borrower if they attend college with Pelle Grant, and $10,000 per borrower if they don’t. Applies to all federal student loan borrowers with an annual income of less than $125,000 or less than $250,000 for married couples. They also announced a proposal to allow those with undergraduate loans to cap their repayments at 5% of their monthly income.
If you have private student loans, these are not eligible for federal student debt cancellation. Visit Credible to see personalized interest rates without affecting your credit score.
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