Nearly Half of Six-Figure Earners Feel Burdened by Debt
Income is a contributing factor to debt repayment, but having a high income doesn’t necessarily negate debt. According to a new LendingTree study, “47% of six-figure earners feel burdened by debt.”
In total, 60% of respondents said they were “somewhat” or “completely weighed down” by debt. A survey from last September revealed that 15% of Americans think they will never get out of debt.
Credit cards were the top source of debt stress, cited by 36.7% of LendingTree respondents. This was followed by student loan debt at 20.7% and medical debt at 13.7%. Baby Boomers and Gen X reported more credit card stress than Millennials, while Millennials reported significantly stronger stress about student loans.
Despite high financial stress, most respondents are optimistic about their future. Nearly two-thirds of participants said they would be in “very good” or “excellent” financial shape by the end of the decade, and only 11% were pessimistic about the future.
Saving money and paying down debts were the top financial resolutions for 2020, representing over 50% of responses. When Americans were asked why they had those goals, 68% said they wanted to enjoy a debt-free life.
Two out of three Millennial respondents feel “buried in debt,” but the same percentage say they will be debt-free by 2030. A study published last week showed that Millennials significantly increased their savings in 2019, and 73% are saving toward a financial goal.