Today’s economy is pretty rough for the vast majority of Americans. People are finding living and getting through each month to be increasingly more challenging.
Between interest rates and prices going up, most Americans aren’t pulling in the necessary income to remain competitive and ahead of the curve.
This means people are falling behind and having to reconsider whether to stay in retirement, how many hours per week they spend driving, and more.
Current economic issues come after many people lost their jobs and businesses due to COVID-19 lockdowns and restrictions. Over the past two years, the economy has taken some brutal hits and now Americans are paying the price for it.
This is especially true for most millennials who are up to their eyeballs in debt, per The Hill.
A Shocking Look at Debt Facing Millennials
The debt facing millennials is nothing to joke around about. According to a report by Real Estate Witch, more than seven out of ten millennials are carrying considerable debt at an average of $117,000.
Furthermore, 67% hold credit card debt, while 48% carry around student loan debt at an average of $126,993. What’s really caught attention is the reality that 29% of millennials aren’t paying making their full monthly credit card payments, therefore incurring interest.
millennials aren’t lazy, we just have student debt and gas is $6 a gallon, sry we turned down your 65 hour work week 45k starting salary with no benefits offer
— samantha jay (@checkpleaseeeee) August 2, 2022
In another sign of economic turmoil, millennials tend to spend 47% of their income just on housing alone. Generally, it’s advised for people to use no more than 30% of their income on housing.
This data makes it clear that many millennials have a long way to go before truly achieving financial security. However, debt and the interest that naturally accompanies it can make digging oneself out of a financial hole much easier said than done.
Debt also hurts one’s credit score which can make loan acquisition and other financial steps forward more difficult in the long term.
Hope For the Future?
In today’s economy, it’s a fact of life that many folks are struggling. Inflation’s continued rise has made living expenses much harder to keep up with.
Meanwhile, people who do carry debt, whether in the form of mortgages, student loans, or overdue credit card bills, are seeing their interest rates go up.
#New: 72% of #Millennials are carrying non-mortgage debt.
Half carry student loan debt.
– Among millennials with student debt, the average balance is $126,993.
-The average millennial spends 47% of their gross monthly income on housing.
— scott budman (@scottbudman) July 29, 2022
The Federal Reserve could further increase the interest rate at any day now, further putting the squeeze on the average American.
Some millennials are confident they’ll be able to pay off the money they owe within the next several years; however, others are going to have a more challenging time, due to the current recession and repeated growth of prices.
Are you shocked that so many millennials today are carrying around so much debt? Do you think the economy is making it harder or easier for people to become debt-free? Please share your views in the comments area.