Are Average Debt Levels Rising?
A new study finds American’s debt levels are increasing. The study found that credit cards and auto loans were the two main causes of personal debt, with the average person owing $22,713 in total.
The report showed that personal debt (excluding mortgages) rose from $21,800 last year to $22,713 this year.
Breakdown of Debt
Most of that debt can be attributed to credit cards and auto loans. About 30 percent of respondents said they had credit card debt, followed by auto loan debt (13 percent) and education loan debt (eight percent). The study found that Gen Xers owed the most total debt, while Baby Boomers owed the least. Here’s a breakdown of the average debt owed by age bracket:
- Gen X average debt: $28,670
- Millennials average debt: $24,833
- Gen Z average debt: $16,478
- Baby boomer average debt: $18,272
The good news coming from the survey was that while 28 percent of people said they had credit card debt, 34 percent of respondents said they had “no debt at all.”
What to Do Now
If you’re currently in a high debt situation, here are some things you can do to alleviate the situation.
- Comb through your budget and cut back on unnecessary expenses.
- Take that extra cash and apply it to your credit card debt.
- Make multiple payments throughout the month if you can.
- You can also look into opening a balance transfer card so you can deal with the debt without paying interest charges.
- Look at consolidating debt into a single, lower interest loan.
If you have lots of debt, you may want to consider a personal loan to pay off those high interest accounts. Fortera has several options that might be right for you. Visit our Personal Loans page to learn more.
Original article by Chris O'Shea and adapted in partnership with SavvyMoney.