Average debt for 20 years

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Debt is a part of the average American’s life, and you can start accumulating it in your 20s.

New discoveries from Experian Credit report 2020 report show that the average Gen Z consumer (aged 24 and under) has approximately $ 10,942 in debt, not including mortgages. Likewise, millennial consumers (aged 25 to 40) have an average of $ 27,251 in non-mortgage debt, likely across credit cardauto loans personal loans and student loans.

If you own a home, your debt balances may be above average: Homeowners in their 20s and early 30s have between $ 172,561 and $ 232,372 in additional mortgage debt.

Millennials and Gen Z represent a wide range of ages and credit profiles, but both include consumers in their 20s. Having over $ 10,000 in debt might seem like a lot to someone early in their career, but it’s not that bad as long as you’re strategic with your repayment plan.

Using the latest data from Experian, Select took a look at how much debt an average consumer is in their 20s so you can see how you stack up.

Conclusions on the state of credit in 2020

2020 results by generation Generation Z (24 years old and under) Millennials / Gen Y (25 to 40 years old) Generation X (41 to 56 years old) Boomers (57 to 74 years old) Quiet (75 years and over)
Average VantageScore® 654 658 676 716 729
Average number of credit cards 1.64 2.66 3.3 3.45 2.78
Average credit card balance $ 2197 $ 4651 $ 7,718 $ 6,747 $ 3,988
Average renewable utilization rate 30% 30% 32% 24% 13%
Average number of retail credit cards 1.64 2.1 2.59 2.63 2.21
Average retail credit card balance $ 1,124 $ 1871 $ 2353 $ 2100 $ 1558
Average non-mortgage debt $ 10,942 $ 27,251 $ 32878 $ 25812 $ 12,869
Average mortgage debt $ 172,561 $ 232,372 $ 245127 $ 191650 $ 159,517
Average delay rate of 30 to 59 days 1.60% 2.70% 3.30% 2.20% 1.20%
Average late payment rates of 60 to 89 days 1.00% 1.50% 1.80% 1.20% 0.70%
Average delay rates 90 to 180 days 2.50% 4.40% 5.30% 3.20% 1.90%

Data shows Gen Z credit card balances increased from $ 2,230 in 2019 at $ 2,197 in 2020, and younger consumers had fewer missed payments than their Millennial, Gen X and Baby Boomer counterparts.

Meanwhile, millennials have seen a 5% drop in their credit utilization rate and have an average credit card balance of $ 4,651 (compared to $ 4,889 in 2019).

How young consumers can prepare for the sequel

As our youngest Gen Z consumers show panels to have developed good credit habits, it is important to prepare for the future so that young people can stay the course.

Life gets a lot more demanding in your 30s, and last year’s Experian data shows just how bad it can impact your finances:

In 2019, these were the average debt balances by age group, including mortgages:

  • Generation Z (18 to 23 years old): $ 9,593
  • Millennials (24 to 39 years old): $ 78,396
  • Generation X (40 to 55 years old): $ 135,841
  • Baby boomers (56 to 74 years old): $ 96,984
  • Silent Generation (75 years and over): $ 40,925

As you can see, between 23 and 39, the potential for increasing debt is huge. During the decade from your mid-twenties to mid-thirties, your responsibilities increase as you prioritize your long-term goals. The desire to settle down, start a family, spend a memorable vacation and / or move higher cost of living areas with better job prospects might motivate your financial decisions more than in your early twenties, when priorities like getting a college degree, find your first apartment and learning how to get by on an entry-level budget were the most important.

To start prepare the way to go, it’s good to know where your finances are today. Start by pulling your free credit report and by registering for free credit monitoring service.

Experiential offers a free credit monitoring service that allows you to register without providing a credit card number and gives you a single overview of your entire borrower profile. See all your credit cards and loans, along with their balances, in one place. Keep track of your payments on time and monitor your accounts for fraudulent activity.

Experian Dark Web Scan + Credit Monitoring

On the secure Experian site

  • Cost

  • Supervised credit bureaus

  • Credit rating model used

  • Dark web analysis

  • Identity assurance

If you want a more robust service with better fraud protection, check out IdentityForce® UltraSecure and UltraSecure + Credit, which offers the most comprehensive security features that monitor your information across a variety of sites and services, including the dark web, court records, and social media (checks your accounts on sites like Facebook, Instagram, and Twitter engage in inappropriate activity which may be perceived as profane or discriminatory).

Consumers receive alerts about potential fraud on your bank, credit card, and investment accounts, as well as the use of your medical ID, social security number, and address.

IdentityForce® UltraSecure and UltraSecure + Credit

On the secure Identity Force site

  • Cost

    For a limited time, get 25% off UltraSecure + Credit Individual and Family, starting at $ 17.99 – offer ends 06/30/21. Click “Learn More” for more details.

  • Supervised credit bureaus

    Experian, Equifax and TransUnion

  • Credit rating model used

  • Dark web analysis

  • Identity assurance

See our methodology, conditions apply. To learn more about IdentityForce®, visit their website or call 855-979-1118.

Once you know where your credit is, take action to get your finances back in order. Make a plan to pay off your debt, read tips on saving for retirement and learn the essentials the basics of credit card. That way, when you decide on the next step in your financial journey, you are well prepared for what lies ahead.

To learn more about IdentityForce®, visit their website or dial 855-979-1118.

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.

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