What Generation Has The Most Debt?

//What Generation Has The Most Debt?

What Generation Has The Most Debt?

Who hasn’t wondered which generation has the most debt? The discussion actually led to a pretty heated battle in the Evan household.  While the people at Live Credit Smart provided us with actual answer of What Generation Has the Most Debt I believe it should be a deeper conversation:

Experian_Infographic

The Wife took the infographic at face value saying that it is our generation was the first ones with access to cheap student loans, cheap mortgage rates and Credit Card offers at every building in college.  I believe that you can’t look at the infographic at face value since it follows a normal American’s life arch.  For instance when you hit 30 you’ll be buying a home, getting a car, and still have those student loans, but as you hit where the baby boomers are your debt should  winding down.

 

What are your thoughts on the debt statistics?

By | 2013-09-26T14:56:34+00:00 February 19th, 2012|Debt|25 Comments

About the Author:

Evan is the owner of My Journey to Millions which was started to track his journey from a broke debt ridden law school graduate to building a positive balance. Need more Evan? Follow him on Twitter, Contact him or get new posts directly to your email

25 Comments

  1. krantcents February 19, 2012 at 3:52 pm - Reply

    As a 65 year old, i am on the cusp of the boomer and greatest generation. My only debt is a small mortgage ($60K) and an high 800 FICO score. My strongest influence was my parents who weathered the Great Depression without debt and even started a business.

    • Evan February 23, 2012 at 12:40 am - Reply

      What kind of business did they start? I know you were entrepreneurial from a young age right? If I remember correctly something to do with parking.

  2. Super Frugalette February 19, 2012 at 10:27 pm - Reply

    I think it is very accurate. Mr. Super Frugalette and I are in our 30s with student loan debt.

    • Evan February 23, 2012 at 12:41 am - Reply

      I feel like any personal finance blogger with the name frugal in her title might be the outlier and not the norm lol

  3. C The Writer February 19, 2012 at 11:17 pm - Reply

    I have 10000 more than that. Yay.

    • Evan February 23, 2012 at 12:43 am - Reply

      Remember that is the average which means there has to be people out there with A LOT more than just 10K above the average

      • C The Writer February 25, 2012 at 12:03 am - Reply

        I knowwwwwwwwww…

  4. GenY February 20, 2012 at 7:56 am - Reply

    I thought I’d be Gen Y, simply because they graduated right when the economy turned sour.

    • Evan February 23, 2012 at 12:44 am - Reply

      Every generation has had to deal with a shitty economy.

  5. PFM February 20, 2012 at 11:00 am - Reply

    As a Gen X’er I thought the baby boomers would have the most debt just from anecdotal evidence, I thought my generation was better informed when it came to financial matters and thus smarter about carrying debt

    • Evan February 23, 2012 at 12:45 am - Reply

      Hmmm but they have had more time to pay it off. Gen Xers have a leg up on Gen Yers as college wasn’t as expensive, but you have picked up houses into the mix

  6. Matt February 20, 2012 at 12:55 pm - Reply

    The numbers seem reasonable to me.

    I’d suggest that the absolute numbers themselves are less meaningful than numbers over time. Meaning, it’s more interesting to compare, for instance, Gen X average inflation-adjusted debt at age 25 to Gen Y average debt at age 25.

    Debt/income ratios for all generations at the same ages (such as, say, 25 and 35) would be interesting to know.

    • Evan February 23, 2012 at 12:47 am - Reply

      EXACTLY MY POINT (Although put much better than I could have).

      It almost seems like the comparison shouldn’t even be made

  7. Jen February 20, 2012 at 7:11 pm - Reply

    I think it makes sense, how you start out building credit (and learning) and then as you get older you’re paying it off. I wasn’t surprised that my generation was the highest. 🙂

    • Evan February 23, 2012 at 12:48 am - Reply

      But I wonder if what the baby boomers had when they were your age?

  8. Julie February 21, 2012 at 7:11 am - Reply

    Generation Y scares me. I’m afraid of what’s in store when it comes to their retirement. I think the problem is not only being ABLE to take out a monstrous amount of debt – but also the expectation that they deserve to have it all. Their parents might “have it all” – but their parents have worked 40+ years for it.

    • Evan February 23, 2012 at 12:52 am - Reply

      Actually had a conversation with My Mother in Law and The Wife about that today…I am not sure I am convinced that my generation believes we need it all RIGHT AWAY. They agree with you thought.

      Really interesting topic.

  9. Jeff February 21, 2012 at 2:26 pm - Reply

    I think that there are a lot more things that need to be considered on this chart – I get that the two highest debt groups of people also have assets to back this (I’m guessing a house) but what about the % of unsecured debt or debt tied to a depreciating asset, like a car?

    • Evan February 23, 2012 at 12:53 am - Reply

      You are 100% correct but I am sure that sort of data would be MUCH harder to pull even for one of the scary credit reporting agencies

  10. C The Writer February 21, 2012 at 3:06 pm - Reply

    Um, my mom didn’t work at all, so that’s an interesting generalization. Not all our parents worked or earned anything.

    • Evan February 23, 2012 at 12:53 am - Reply

      Not sure who you are responding to.

      • C The Writer February 25, 2012 at 12:04 am - Reply

        Julie: “Generation Y scares me. I’m afraid of what’s in store when it comes to their retirement. I think the problem is not only being ABLE to take out a monstrous amount of debt – but also the expectation that they deserve to have it all. Their parents might “have it all” – but their parents have worked 40+ years for it.”

  11. Daisy February 23, 2012 at 7:49 pm - Reply

    Interesting! I sort of hate the generalizations that are frequently made against different generations. I’m a Gen Y, and there are certainly some irresponsible, greedy members of my generation, but you will find the same in any generation. I am much more financially responsible than both of my parents, though they had more investment opportunities than I do when they were my age (housing market was a lot better, for instance). I’m in my early 20s and almost every single one of my similar-aged friends has retirement accounts. Maybe there’s a difference between American GenY and Canadian Gen Y, though. I’m Canadian.

    • Evan February 24, 2012 at 11:14 am - Reply

      First thing is first, I freaking love the name of your blog. Second, I completely agree that generalizations are so frustrating about a younger generation since EVERY SINGLE OLDER GENERATION BELIEVES THE NEXT GENERATION IS TERRIBLE.

  12. Savvy Scot February 26, 2012 at 12:58 pm - Reply

    Thanks for sharing this – there is an astounding trend in the credit scores!

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