Millennials are swamped in debt, and it's not just student loans

millennial debturbazon/Getty Images

Millennials are feeling the burn of debt, and it's more than student loans.

That's according to recent findings in 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.

Slightly more than half of millennial respondents carry credit card debt. Of those with credit card debt, more than half owe less than $5,000 and nearly a quarter owe $5,000 to $10,000.

But a mortgage is typically millennials' biggest debt. Of millennial respondents with a mortgage (27.7%), 23% owe $50,000 to $100,000, and half owe more than $100,000.

In fact, nearly as many millennials have a mortgage as ones that have undergrad student loan debt (28.4%). Slightly more than half owe between $5,000 and $30,000 on their undergrad student loans. That's not to mention postgrad student debt, which 11% of millennial respondents have.

Read more: More than half of millennials have credit-card debt, and it reflects a financial reality other generations didn't face

These debt loads make sense considering that both home prices and college tuition have skyrocketed over the past 40 to 50 years. College tuition in particular has more than doubled since the 1980s. A recent SuperMoney report analyzed data from the US Federal Housing Agency and found that the median price of home sales has increased by 39% since the 1970s.

Meanwhile, national health care costs per person have increased by $9,000 in the same time frame, according to the report's analysis of National Health Expenditure data. That might partly explain why nearly a quarter of millennials have had to take out personal debt or a line of credit or medical debt, according to the Insider and Morning Consult survey.

And 41% of millennials have a car loan - more than 34% of overall respondents, the survey found. A third of millennials with car loans owe between $10,000 and $20,000.

Car prices have also increased over time but not as drastically - from November 2006 to November 2016, prices for new cars increased by 5%, according to the Bureau of Labor Statistics. That more millennials have car loan debt could be because Gen X and baby boomers have paid off their car loans by now.

Generation Z from Business Insider Intelligence

{{}}
Add Comment()
Comments ()
X
Sort By:
Be the first one to comment.
We have sent you a verification email. This comment will be published once verification is done.