Millennials – we are in deep – as in debt! According to a report from Experian, millennials on average owe $87,448 in debt. Experian broke it down into four debt categories – credit card debt, student loan debt, auto loan debt, and personal loan debt – to determine how much millennials own in each type. Here’s the average amount owed for each:
- Average credit card debt: $4,322
- Average student loan debt: $38,877
- Average auto loan debt: $19,011
- Average personal loan debt: $12,306
Experian says Millennials’ average debt grew 11.5% between 2019 and 2020 which was the second-highest debt growth of any generation. The younger generation, Gen Z, is way worse off growing by 67.2%.
When it comes to paying off debt, one of the most recommended and common ways of doing so is the “snowball method.” Focus on paying off your smallest debt first and then work your way up to the more monstrous balances.
Read the full study here!