Nearly three-fourths of U.S. millennials have some form of non-mortgage debt, with the average millennial owing $117,000. Just 28% of millennials are debt-free.
90% of American millennials have had non-mortgage debt at some point, with 72% of millennials currently owing non-mortgage debt averaging $117,000, according to a new report.
In a Real Estate Witch survey of 1,000 millennials, 67% reported carrying credit card debt – making this the most common type of debt among millennials. Of those with credit card debt, the average amount owed is $5,349.
Unsurprisingly, student loan debt was the next most common. 48% of in-debt millennials reported having student loans, owing an average of $126,993. With 40% of millennials earning less than $50,000 annually, 24% regret not choosing a career with higher earning potential, and 22% regret taking out student loans altogether.
About 63% of millennials believe it will take them one to five years to pay off their debt, while nearly 1 in 10 think it will take more than 10 years. Approximately 1 in 16 (6%) don’t think they’ll ever be able to pay off their debt.
The survey found that millennials spend nearly half (47%) of their monthly income on housing, roughly 1.5x the 30% financial experts recommend. And with housing prices continuing to increase, one-third of millennial renters don’t think they will ever be able to afford a home.
Although the average millennial has $49,463 in savings, one in seven millennials report having no savings whatsoever. Among respondents, not saving enough was the number one financial regret (37%).
The current financial state for millennials is bleak – one in four millennials doubt that they could pay a $500 emergency expense out of pocket, one in five say they can’t afford to have children, and about one in four don’t even know their credit score.
It’s no surprise that 41% of millennials feel pessimistic about their finances.
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