Credit-card debt is surprisingly common among millennials, but many of them aren't worried about paying it off
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- More than half of millennials have credit-card debt, but some just aren't worried about it, according to a new survey from Insider and Morning Consult.
- Around 30% of respondents with credit-card debt have little to no stress at all about it.
- Credit-card debt can damage your credit score, affecting your ability to build wealth.
- Read more personal finance coverage.
That's according to a new survey from Insider and Morning Consult. The survey polled 2,096 Americans about their financial health, debt, and earnings for a new series, "The State of Our Money." More than 670 respondents were millennials, defined as ages 23 to 38 in 2019.
More than half (51.5%) of millennial respondents have credit-card debt. And while nearly 68% have some or a lot of stress about it, around 30% have little to no stress at all (some respondents selected "don't know/not applicable").
That might be because most millennials with credit-card debt don't owe a lot. About 70% of those who have little stress about their credit-card debt owe less than $5,000. But 20% owe $5,000 to $10,000, almost 5% owe between $10,000 and $20,000, and 3% owe $30,000 to $40,000.
It's a somewhat similar picture for those who aren't stressed at all about their credit-card debt - 83% owe less than $5,000. However, nearly 5% of this group of respondents each owe $5,000 to $10,000 and $10,000 to $20,000.
Perhaps these unworried millennials are just confident they'll pay their debt off - 64% of millennials who have credit-card debt have paid it all off at one point or another before.
How to pay off credit-card debt faster
Credit-cards often have high interest rates, which can prolong your repayment schedule if you don't stay on top of it, Business Insider's Tanza Loudenback reported. Credit-card debt can damage your credit score, affecting long-term wealth creation.
To pay off your debt quickly, you can ask for a lower interest rate, double your minimum payment, or consolidate your balances into one so you can make a single monthly payment.
You can also take out a personal loan, which will give you quick access to cash to pay off your outstanding balance. It may seem counterintuitive, but personal-loan interest rates can be as low as 6% to 7%, compared to 17% to 24% on a credit card, Loudenback wrote.
If none of the above options appeal to you, consider the debt avalanche method: Paying off the most expensive debt first (the one with the highest interest rate) so you can save money on interest.