Sign-up for our newsletter and join us on our mission to save as much money as possible!
Student loan debt is very much in the news these days, but it actually isn’t the biggest debt crisis that millennials are facing.
That issue is … drum roll… credit card debt. A lot of credit card debt. Per data from Northwestern Mutual’s 2019 Planning & Progress Study, millennials (defined as people between the ages of 23 to 38) have an average of $27,900 of personal debt — not including mortgages.
The biggest debt that this group is facing? Yes, you got it, credit cards.
“One issue that a lot of millennials have is that they have not wanted to sacrifice their lifestyle, even though they have student loans or lower incomes,” Chantel Bonneau, a financial adviser for Northwestern Mutual, told CNBC. “That has left us in this spot where they’ve accumulated a significant amount of credit card debt.”
The impacts of this are going to last for decades. “The likelihood that millennials are prioritizing retirement in any meaningful way as an overall generation seems unlikely,” Bonneau says.
All that said, don’t be too quick to point at the millennial generation for being too spendy there are lot of factors that are going into this. Inflation coupled with wage stagnation, the impact of having student loans (an impact that is being felt much harder by millennials than it was by Gen-X) have all led to the predominance of so many people living paycheck to paycheck. And when your living paycheck to paycheck, credit cards are there to help bridge the gaps.
Bottom line: Just pointing to millennials and telling them to spend less isn’t really going to do the trick with this complicated issue.
If this sounds like you at all, we have put together some pretty robust guides for how to get out of debt. It might not happen overnight (or over a year), but it can be done.
We aren’t done helping you make and save money! Swipe for lot’s of ways to connect with us so you never miss a single one of our money tips or tricks. Your wallet will thank you.
Sign-up for our Newsletter and get The Money Manual’s proven money making and saving tips and tricks directly in your inbox.
Like us on Facebook so you never miss a single hack for making and saving money ever again.
In need of some daily motivation to get your finances on track (who isn’t)?
Follow us on Instagram.Follow on Instagram
Join our community “Let’s Talk About Debt” for support and expert help around all things debt.
Subscribe to our YouTube channel for money saving app reviews brought to you by our editors.