Federal borrowers aged 25 to 34 owe an average debt of $33,570. Debt among 25- to 34-year-olds has increased 6.1% since 2017. 35- to 49-year-olds owe an average federal debt of $43,208.
That included all types of consumer debt products, from credit cards to personal loans, mortgages and student debt. The average amount of debt by generation in 2020: Gen Z (ages 18 to 23): $16,043. Millennials (ages 24 to 39): $87,448.
Student Loan Debt by Age
17.7% of people with a student loan balance are under the age of 25. 68.6% of indebted student borrowers are between 25 and 50 years old. 34% of adults aged 18 to 29 years have student loan debt, making them more than twice as likely as adults in any other age group to have student debt.
35-to-49-year-old borrowers owed the most on average in terms of total debt, at $613 billion in Q2 '21, while the 62-and-older group, at $92.7 billion, owed the least during this same period. California had the highest student loan debt balances in total and across all age groups.
Outstanding consumer debt in the U.S. is currently around $14.88 trillion, representing an average individual debt of nearly $93,000, according to data from an Experian consumer debt study.
A good goal is to be debt-free by retirement age, either 65 or earlier if you want. If you have other goals, such as taking a sabbatical or starting a business, you should make sure that your debt isn't going to hold you back.
Net Worth at Age 30
By age 30 your goal is to have an amount equal to half your salary stored in your retirement account. If you're making $60,000 in your 20s, strive for a $30,000 net worth by age 30. That milestone is possible through saving and investing.
The Consumer Financial Protection Bureau recommends you keep your debt-to-income ratio below 43%. Statistically speaking, people with debts exceeding 43 percent often have trouble making their monthly payments. The highest ratio you can have and still be able to obtain a qualified mortgage is also 43 percent.
Since they are now the country's largest generation—83.1 million people, according to the US Census Bureau—the millennial debt crisis is a national issue. Millennials are the most indebted generation in history. A quarter of all US citizens aged 18 to 34 owe more than $30,000.
New Experian data finds consumers in their 20s and 30s have up to $27,251 in credit card, auto loans and student loan debt. Debt is part of the average American's life, and you can start to accumulate it as young as your 20s.
If you're carrying serious credit card debt — like $15,000 or more — you're not alone. The average household with revolving credit card debt — that is, debt that they carry from one month to the next — had more than $7,000 worth of revolving balances in 2019. That's just the average.
Bottom line, if your credit card debt is only a little over $2,000, don't worry about it. I'm sure you'll get sick somewhere along the line and owing $2,000 will seem quaint.
The age group 18-25 has an average debt load of $8,345. The average debt load peaks at 46-55 with a debt load of $33,532. After this the debt load tapers off.
Gen X — Average debt: $140,643
With ages ranging from 41 to 56, Gen Xers have a wide range of life experiences, along with the highest average debt of any generation. Many members of Gen X are sending their kids to college for the first time, while still carrying an average student loan balance of just over $45,000.
According to the new "State of Credit 2021" report from Experian, one of the three major credit reporting bureaus, Gen Xers have the highest credit card debt and highest levels of mortgage and non-mortgage debt of any generation, on average.
What is the 50-20-30 rule? The 50-20-30 rule is a money management technique that divides your paycheck into three categories: 50% for the essentials, 20% for savings and 30% for everything else.
Even though household net worth is on the rise in America (at $141 trillion in the summer of 2021)—so is debt. The total personal debt in the U.S. is at an all-time high of $14.96 trillion. The average American debt (per U.S. adult) is $58,604 and 77% of American households have at least some type of debt.
Lots of people have credit card debt, and the average balance in the U.S. is $6,194. About 52% of Americans owe $2,500 or less on their credit cards. If you're looking at $5,000 or higher, you should really get motivated to knock out that debt quickly. The sooner you do, the less money you'll lose to interest.
Many experts agree that most young adults in their 20s should allocate 10% of their income to savings.
By age 25, you should have saved at least 0.5X your annual expenses. The more the better. In other words, if you spend $50,000 a year, you should have about $25,000 in savings. If you spend $100,000 a year, you should have at least $50,000 in savings.
If you actually have $20,000 saved at age 25, you're way ahead of the national average. The Federal Reserve's 2019 Survey of Consumer Finances found that the median savings account balance was $5,300 across households of all ages, not just 20-somethings.