Unfortunately, millennials are accumulating the bad debt that involves credit cards and student loans for often useless degrees and not the better debt like home mortgages.
According to the Experian 2020 State of Credit report, the average millennial consumer “has about $27,251 in non-mortgage debt, and millennial homeowners have an average mortgage balance of $232,372.”
The Experian report includes all non-mortgage consumer debt like “any revolving credit or installment loans, including credit cards, student loans, car loans, and personal loans.”
There is good news for millennials though.
When compared to other generations, the youths of America aren’t doing too bad.
For example, Gen Xers and Boomers have way more open credit cards and far more credit card debt. However, a good chunk of debt for those generations includes owning a home.
The Experian report also had good news to report about paying off the debt. Millennials are pretty good at making payments and making payments on time.
While Millennials’ average credit card balance is $4,651, most have their payment plans under control.
Just 2.7% of millennials have fallen behind on their payments for 30 to 59 days, and even fewer (1.5%) are 60 to 89 days behind.
The delinquency rate for 90- to 180-days-past-due accounts is 4.4%.
No matter your age, there are ways to dig yourself out of credit card debt. Here are the quickest ways, based on how much you owe.