Here's how to get those balances down.
According to data on 78.2 million Credit Karma members, members of Generation X (ages 43 to 58) carry the highest average total debt — $61,036.
Including mortgages, Gen Zers increased their total debt by 179%, or an average of $10,797, to $34,133, LendingTree said. That, however, is the lowest dollar amount among all four generations.
Those between the ages of 40 and 49 hold an average of about $7,600 in credit card debt — the highest of any age bracket, per TransUnion data provided to CNBC Make It.
According to February data from credit management company Credit Karma, Gen X (people between the ages of 43 and 58) collectively has the most credit card debt at an average of $8,266 per Gen Xer. But no matter your age, if you're buried in bills, there are things you can do to help dig your way out faster.
The adoption of buy now, pay later among more young consumers may help them obtain traditional credit, like credit cards, more quickly than previous generations who did without.
While Gen X may not have taken out as much student debt as Gen Zer's have had to, they're the generation shouldering most of the nation's outstanding debt. As of 2021, the average Gen Xer had $46,317 in student loan debt. 1.4 million Gen Xers between ages 35 and 49 carry over $500 billion in student debt.
Former Société Générale rogue trader Jérôme Kerviel owes the bank $6.3 billion. Here's what his case tells us about financial reform.
“Shark Tank” investor Kevin O'Leary has said the ideal age to be debt-free is 45, especially if you want to retire by age 60. Being debt-free — including paying off your mortgage — by your mid-40s puts you on the early path toward success, O'Leary argued.
The United States has the world's highest national debt at $31.4 trillion.
A separate Deloitte report has found that cost of living is a top concern for Gen Z, and half of them are getting by paycheck after paycheck—making higher pay a top motivator in the job search process. Millennials and Gen Z both lack the safety nets their parents and grandparents had, Boneparth says.
According to Finder's Consumer Confidence Index, Gen Z saves an average of $857 per month, while millennials save $294. Gen Z also has an average of $10,062 in savings compared to $7,165 for millennials.
Gen Z Is Saving Money
Of those surveyed, 69.1% are currently saving some amount of money. And within that group, 56.4% are putting money away for their first home. It makes sense that this demographic has prioritized saving for a house.
Baby boomers, born during the revolutionary two decades that followed the end of the Second World War, are currently the richest generation on the planet, with the average Boomer being worth $1.2 million, according to Fortune.
The oldest Gen Zers have had money on the brain since they first entered the workplace –and many have been dissatisfied with their pay packets. Data shows that as Gen Z enter and rise through the workforce, they're highly pay motivated – and perhaps more than any other generation right now.
Generation X is sometimes called the “forgotten generation.” But businesses would do well not to forget about them: Annually, Gen X consumers spend more on average than any other generation.
Debt-to-income ratio is your monthly debt obligations compared to your gross monthly income (before taxes), expressed as a percentage. A good debt-to-income ratio is less than or equal to 36%.
Being debt-free is a financial milestone we often hear about people striving for. Without debt, you can focus on building more savings, investing those extra funds and just simply having more peace of mind about your finances.
Debt can be good or bad—and part of that depends on how it's used. Generally, debt used to help build wealth or improve a person's financial situation is considered good debt. Generally, financial obligations that are unaffordable or don't offer long-term benefits might be considered bad debt.
There are countries such as Jersey and Guernsey which have no national debt, so the pay no interest.
On the other end of the spectrum, Brunei has the lowest debt to GDP ratio at 1.90%, followed by the Cayman Islands at 4.50%, Kuwait at 7.10%, and Afghanistan at 7.40%. There are regional trends when it comes to debt to GDP ratios.
Dave Ramsey is a well-known financial guru and author with a nationally syndicated radio show and other media presence. Before becoming a financial pundit, Ramsey saw both early success and bankruptcy.
Gen Z: Gen Z is the newest generation, born between 1997 and 2012. They are currently between 9 and 24 years old (nearly 68 million in the U.S.)
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."
We found that relatively fewer millennials had student debt (31% versus 36% for older Gen Zers), which means this financial weight falls more broadly on the younger generation.