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."
Millennials are sinking under the weight of their debts, having added a record $3.8 trillion at the end of 2022. Here's what's driving the trend — plus 3 tips to get your head above water.
Credit Karma members closest to midlife carry the most average total debt. Generation X averages $61,036 in debt, followed by baby boomer members, who have an average total debt of $52,401.
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.
Credit Card Debt is the Most Prevalent Type of Debt Amongst Millennials.
Here's the average debt balances by age group: Gen Z (ages 18 to 23): $9,593. Millennials (ages 24 to 39): $78,396. Gen X (ages 40 to 55): $135,841.
The average credit card debt for 30 year olds is roughly $4,200, according to the Experian data report. Compared to people in their 50s, this debt is not so high.
According to the study, the average Australian currently has, excluding home loans, $20,238 of personal debt. So this includes all the money owing through instruments like credit cards, personal loans and retail instalment plans.
“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.
Becoming debt free means that you'll be saving more towards retirement. Maintain a monthly budget like you did when you were paying off your debt, but now, instead of sending off those monthly payments to a credit card company or mortgage lender, you're going to put it into savings.
And a survey of 600 individuals found that Gen Z is the most unhappy generation at work. Just 59% of Gen Z workers are happy, compared to 69% for Baby Boomers and 76% for Millennials and Gen X. In addition, 9% of Baby Boomers are unhappy at work, compared to 26% of Gen Z and 13% for Gen X and Millennials.
Baby boomers have the highest net worth, averaging $1.6 million per household.
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.
According to The Journal's analysis, people who are 30 to 39 years old — currently the bulk of the millennial generation — have about $3.8 trillion in debt as of the fourth quarter of 2022, or about a $140 billion increase from the third quarter of 2022.
More importantly, these worries indicate just how concerned they are about what's coming next—about making the right choices today in order to ensure a stable future. In truth, decision-making itself may be the number-one reason why millennials are so depressed and anxious, and why they feel the need for psychotherapy.
A September Lendingtree report found that 22% of millennials (ages 26 to 41) and 19% of Gen Zers (ages 18 to 25) have entered into debt from what they've spent on their romantic dates. Surveyors said on average they spend about $91 on a date, and women respondents men spend an average of $104.
Between mortgage loans, credit cards, student loans, and car loans, it's not uncommon for the typical American to have one or more types of debt. The ones who are living debt-free may seem like a rarity, but they aren't special or superhuman, nor are they necessarily wealthy.
Average consumer household debt in 2023
According to Experian, average total consumer debt in 2022 was $101,915. That's up nearly 10% from 2020, when average total consumer debt was $92,727.
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.
Many people would likely say $30,000 is a considerable amount of money. Paying off that much debt may feel overwhelming, but it is possible. With careful planning and calculated actions, you can slowly work toward paying off your debt. Follow these steps to get started on your debt-payoff journey.
A common rule of thumb is to have at least three months and ideally six months worth of living expenses in your savings at a minimum. This is to ensure you can manage if you were to suddenly be out of a job, if a health problem emerges or a change in personal circumstances occurs.
Australians wanting to be in the country's top 1% for wealth need to have an individual net worth of US$5.5 million ($8.3 million), Knight Frank's 2023 Wealth Report has found.
It's not at all uncommon for households to be swimming in more that twice as much credit card debt. But just because a $15,000 balance isn't rare doesn't mean it's a good thing. Credit card debt is seriously expensive. Most credit cards charge between 15% and 29% interest, so paying down that debt should be a priority.
The latest lending indicators from the Australian Bureau of Statistics (ABS) show that the average mortgage size (for owner-occupier dwellings) was $585k in May 2022.
By the time you reach age 40, prevailing wisdom says you should have a net worth equal to about twice your annual salary. Hopefully, you climbed the salary ladder a bit in your 30s, too. If you're making $80,000 annually, for example, your goal should be to have a net worth of $160,000 at age 40.