Adults Under 30 Have Over $1 Trillion in Debt
According to household debt data from Equifax and the New York Fed Consumer Credit Panel, American adults under the age of 30 have $1.05 trillion in debt. This is the highest level of debt for this age group (18-29 year-olds) since 2007, right before America’s financial crisis.
By comparison, adults 30-39 years old have $2.9 trillion in debt, and 40-49 year-olds have the highest level of debt at $3.4 trillion. Those values decrease with older age groups, coming in at $1 trillion for adults over 70.
What is causing this high debt volume among young adults? Student loans make up the bulk of it, increasing by $15 billion in the fourth quarter of 2018. In total, Americans have $1.46 trillion in outstanding student loan debt. Student loans represent 38% of debt for adults between 18 and 29, followed by mortgage loans at 36%.
Credit cards only represent 6% of debt for adults under 30, the lowest of all age groups. Credit cards make up 21% of debt for adults in their 50’s and 19% for adults in their 40’s.
Newly-released data from The Nilson Report shows Mastercard and Visa purchases rose to $6.021 trillion in 2018, up 9.5% from 2017. This includes spending on credit cards, debit cards and prepaid cards.