(NewsNation) – Mortgages make up the largest share of household debt, but a new analysis shows most Americans owe thousands of dollars beyond their home loans, with members of Gen X carrying the highest balances.
In the 100 largest U.S. metros, the average non-mortgage debt is $24,668, according to online lending marketplace LendingTree. Gen Xers, between the ages of 44 and 59, owed $33,859, the most of the four generations studied.
Millennials weren’t far behind, having $30,558 in non-mortgage loans, including credit cards, auto loans, student loans and personal loans.
Debt levels also vary widely by region. Consumers in McAllen, Texas, have the highest auto debt of any generation, LendingTree found.
Gen Zers in northeastern cities like Boston and New Haven, Connecticut, had the highest student loan debt, while millennials carried the highest student loan balances in southeastern cities like Durham, North Carolina, and Atlanta, Georgia.
The analysis is based on more than 428,000 anonymous credit reports from LendingTree users in the nation’s 100 largest metro areas. Credit reports are from October. 1, 2023, until March 31, 2024.
Average non-mortgage debt balance by generation, according to LendingTree:
- Gen Xers (ages 44-59): $33,859
- Millennials (ages 28-43): 30 558 dollars
- Baby Boomers (ages 60-78): $18,779
- Gen Zers (ages 18-27): $16,562
Gen X’s debt situation
Among all generations in the 100 largest metros, Gen Xers have the highest average non-mortgage debt at $33,859. The group also has the largest share of people in debt, with nearly 99% carrying some sort of balance, LendingTree found.
Gen Xers led the way in three of the four categories analyzed. The group — between the ages of 44 and 59 — has the highest average credit card, auto loan and student loan balances.
Where they owe more: Four of the five metros where Gen Xers owe the most are in Texas. McAllen tops the list, with Gen Xers owing an average balance of $46,166. Large car loans seem to be the main driver in the Lone Star State, with the typical car debt of Gen Xers hovering around $29,000 in multiple cities.
Gen Xers’ credit card balances were highest in the Northeast and Florida. Bridgeport, Connecticut ($8,669) and New York City ($7,922) topped the list, followed by Miami ($7,797), Lakeland ($7,777) and Cape Coral ($7,714), Florida.
Only 25% of Gen Xers still carry student loans; however, their average balance is $31,066, the highest of any generation.
The Millennium Debt Situation
Millennials have had less time than Gen Xers to accumulate debt, but they are already well ahead of the much older Baby Boomers, carrying an average non-mortgage debt balance of $30,558.
Student and car loans are top challenges for 28- to 43-year-olds. Millennials have the second highest auto loan debt among generations, with nearly 60% owing an average balance of $20,826.
While their average student loan balance is lower than Gen X, millennials are more likely to have that form of debt. Over 38% of millennials have student debt and their average balance is $24,112.
Where they owe more: Three of the top five cities were in Texas with El Paso topping the list. Millennials in the West Texas city have an average non-mortgage debt balance of $42,982.
Once again, car loans tell a lot of the story. According to the analysis, five of the six US cities where millennials carry the most car debt are in Texas.
When it comes to student loans, millennials in Washington DC owe the most, $31,895. The nation’s capital is followed by Durham ($30,606) and Raleigh ($30,119), North Carolina; Atlanta ($29,724); and Columbia, South Carolina ($29,353).
Baby boom debt situation
Despite being the oldest generation in the analysis, baby boomers carry significantly less non-mortgage debt than Gen Xers and millennials, carrying an average balance of $18,779 in the nation’s largest metros.
The group between the ages of 60 and 78 is the most likely to carry credit card debt, with 93% carrying a balance. They owe an average of $4,862, the second highest of the generations studied.
Baby boomers are doing much better with student loans, with only 11% still holding them. They are also less likely to have car debt, with only 48% owing car loans, the second lowest by generation.
Where they owe more: McAllen, Texas ($33,020) topped the list again, followed by Augusta, Georgia ($29,754), San Antonio ($28,524), Austin ($26,686) and Dallas ($25,965).
Although they have the lowest percentage of personal loans, baby boomers carry the highest balances, with an average of $5,363. In Honolulu, Hawaii, they owe $12,676 in personal loans.
The debt situation of General Z
The youngest generation in the study has the lowest debt ($16,652), but the vast majority, 97%, still carry a balance.
When it comes to student loans, Gen Zers owe significantly less than other generations, with an average balance of $12,172 — roughly half of what millennials owe for school. Part of that is because many 18- to 27-year-olds are still working their way through college, but they’re also less likely to attend in the first place.
Gen Zers are also quite likely to have auto debt, with about 47% of the nation’s youngest adults carrying an average car loan amount of $17,402, according to the analysis.
Where they owe more: McAllen ($27,781) and El Paso, Texas ($22,476) ranked top for Gen Z, but the rest of the top ten had more geographic diversity than other generations. Cities like Cape Coral, Florida ($21,208), Harrisburg, Pennsylvania ($21,178) and Syracuse, New York ($21,116) were also among the highest for Gen Z debt.
Young people in the Northeast have a particularly high level of student loan debt. Boston ($20,986) ranked first, followed by New Haven ($20,173), Bridgeport ($19,250) and Hartford ($18,481), Connecticut.
#Debt #Chase #Generation #Owes
Image Source : www.newsnationnow.com
