Millenials Are A Trillion Dollars In Debt And Most Don't Even Own A Home

[The M.I.C.]

When compared to a similar point in time, Millennials are deeper in debt than any other generation that has come before them. And the biggest reason why they are in so much debt may surprise you. We’ll get to that in a minute, but first let’s talk about the giant mountain of debt that Millennials have accumulated. According to the New York Fed, the total amount of debt that Millennials are carrying has risen by a whopping 22 percent in just the last five years…

New findings from the New York Federal Reserve reveal that millennials have now racked up over US$1 trillion of debt.

This troubling amount of debt, an increase of over 22% in just five years, is more than any other generation in history. This situation may leave you wondering how millennials ended up in such a sorry state.

Many young adults are absolutely drowning in debt, but the composition of that debt is quite different when compared to previous generations at a similar point in time.

Mortgage debt and credit card debt levels are far lower for Millennials, but the level of student loan debt is far, far higher…

While the debt levels accumulated by millennials eclipse those of the previous generation, Generation X, at a similar point in time, the complexion of the debt is very different.

According to a 2018 report from the St. Louis Federal Reserve Bank, mortgage debt is about 15% lower for millennials and credit card debt among millennials was about two-thirds that of Gen X.

However, student loan debt was over 300% greater.

Over the last 10 years, the total amount of student loan debt in the United States has more than doubled.

It is an absolutely enormous financial problem, and there doesn’t seem to be an easy solution. Some politicians on the left are pledging to make college education “free” in the United States, but they never seem to explain who is going to pay for that.

But what everyone can agree on is that student loan debt levels are wildly out of control. The following statistics come from Forbes…

The latest student loan debt statistics for 2019 show how serious the student loan debt crisis has become for borrowers across all demographics and age groups. There are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt in the U.S. alone. Student loan debt is now the second highest consumer debt category – behind only mortgage debt – and higher than both credit cards and auto loans. Borrowers in the Class of 2017, on average, owe $28,650, according to the Institute for College Access and Success.

Due to the fact that so many of them are swamped by student loan debt, the homeownership rate for Millennials is much, much lower than the homeownership rate for the generations that immediately preceded them. The following comes from CNBC…

The homeownership rate for those under 35 was just 36.5 percent in the last quarter of 2018, compared with 61 percent for those aged 35 to 44, and 70 percent for those aged 45 to 54, according to the U.S. Census. The millennial homeownership rate actually dropped in the fourth quarter compared with the third quarter, but was unchanged year over year.

This is one of the big reasons why “Housing Bubble 2” is beginning to burst. There are not enough Millennials buying homes, and it looks like things could be even worse for Generation Z.

Millennials Are More Than A Trillion Dollars In Debt, And Most Of Them Don’t Even Own A Home

 

[Ghostface Trillah]

College is a scam at this point but people keep signing up for it because God forbid they have a "regular job"

Then they wind up in debt doing all types of odd jobs just to be able to eat ramen noodles

 

[CouldntBeMeTho]

Bu but america is the greatest country ever

Previous generations got educations, health care, and bought property for pennies on the dollar, then turned around and made us sell our entire existence just to get a taste of the things they were handed. fukking scum, making damn near a whole generation homeless and hopeless to outright own anything

 

[AquaCityBoy]

In before the Coli Republicans come in here and say it's because they're lazy and want to pop bottles and eat out every night.

 

[Sad Bunny]

College is a scam at this point but people keep signing up for it because God forbid they have a "regular job"

Then they wind up in debt doing all types of odd jobs just to be able to eat ramen noodles

It's not a scam if you are smart and have parents who coach you correctly.

The scam is going to a school you can't afford which can be prevented via good parenting and schooling and a little bit of knowledge.

I couldn't have gotten my job without a degree and my school debt was minimal compared to the average person

 

[EBK String]

maybe all the debt cacs are racking up will close the wealth gap

 

[Boolean]

25 yr old engineer here and I won’t be owning a home until I inherit my mamas, grandmas or uncles house

 

[Quarquar]

maybe all the debt cacs are racking up will close the wealth gap

I dont know. The next 10-15 years will likely see the greatest transfer of wealth this country has ever seen. A lot of these white people will be bailed out by inheritances which will only excaberate the racial wealth gap issues.

 

[Nobu]

It's not a scam if you are smart and have parents who coach you correctly.

The scam is going to a school you can't afford which can be prevented via good parenting and schooling and a little bit of knowledge.

I couldn't have gotten my job without a degree and my school debt was minimal compared to the average person

Yup. Still studying, but STEM + high paying internships means I'll graduate next year with minimal debt (18k) and 6 figure job offer lined up. Already been making 6 figures (pro-rata) as an intern. I'll be able to pay off that debt right away with a signing bonus. Gotta be strategic about it.

 

[Apollo Creed]

It's not a scam if you are smart and have parents who coach you correctly.

The scam is going to a school you can't afford which can be prevented via good parenting and schooling and a little bit of knowledge.

I couldn't have gotten my job without a degree and my school debt was minimal compared to the average person

Many (wont say most) black people are first gen college students so they literally come from families lf a bunch of clueless (as in ignorant to the ways, not dissing them) people who dont know the education system and white collar society operates

You got alot of people who think simply showing up and getting good grades is sufficient.

 

[Miss Lucifer's Love]

Couple this with the subprime auto loan bubble that's also about to burst (don't learn your lesson from 2008 banking brehs ) and things are about to get ugly

 

[TRY GOD]

Listen Im riding ADOS TRAIN ALL DAY, reparations would solve my problem.

But the fact is that none of these politicans are even talking about student loan easing or forgiveness, is going to have alot more than black people mad at the government.

 

[1thouwow]

“Why own a home and be tied down to such a big financial responsibility”

 

[Uitomy]

25 yr old engineer here and I won’t be owning a home until I inherit my mamas, grandmas or uncles house

Same, I'm moving back home to help my grams in her twilight years so I can strengthen our connection, she wanna pass it on to me I'd be an idiot not to take it, plus it's in a safe neighborhood, ducked out from all the bullshyt that goes on in jax

 

[Uitomy]

I dont know. The next 10-15 years will likely see the greatest transfer of wealth this country has ever seen. A lot of these white people will be bailed out by inheritances which will only excaberate the racial wealth gap issues.

Yeah but they won't sustain that wealth at all, most of the wealthy people in this country are first generation, most of them won't teach their kids how to continue that, you're gonna see a lot of family buisnesses sold off to other people