Millennials and Gen Z are debt-ridden cohorts with an unexpected amount in average a new report reveals. Millennials, who account for a huge chunk of the population in the United States have an average debt of $27,900. Gen Z, the youngest generation with the oldest being 22 years old this year owes an average of $14,700 in debt.
“U.S. adults aged 18+ report having an average of $29,800 in personal debt, exclusive of mortgages, according to the latest findings from Northwestern Mutual’s 2019 Planning & Progress Study. The research also revealed that 15% of Americans believe they’ll be in debt for the rest of their lives,” the report reads.
The report published by the Northwestern Mutual said that the average debt of young people in American, which was considered in the study excludes mortgages. They revealed that the main source of debt for Millennials are credit card bills and student loans for the Gen Zs.
And their youth explains why about 45% of millennials and 43% of Gen Z reported feeling guilty about their debt at least every month. They account to the biggest cohort to have the guilt over their date with an average bigger than all other age groups that were stratified in the study.
According to Chantel Bonneau, wealth management advisor at Northwestern Mutual, the amount of the debt of young people in America right has already become “the new normal.” “There are lots of people who exit school, and before they start their first job, have debt. That is a different situation from 30 years ago,” she added.
Nonetheless, the researchers are hopeful amid the staggering number because there has been a slight decrease in the average debt of young people in 2019 as compared to last year.
“While those numbers are staggering, they represent an improvement over last year when U.S. adults reported an average of $38,000 in personal debt. Still, the debt problem in America continues to run deep with wide-spread implications,” they said.