How Much Debt Do Americans Have?

The people of America are falling more and more into the rabbit hole of debt, and as the year 2020 approaches more than 70% of Americans are in some sort of debt. Every house in the US is in an estimated debt of $140,000 which means that every individual owes around $38,000. The American system has taken such shape that everyone is taking a loan for something. Whether it is credit cards, mortgages, personal loans or car loans, everyone has a need that cannot be solved without a loan. According to a survey conducted by Northwestern mutual mortgage and credit cards are the top source of debt, followed by student loans and car loans. Not only it becomes tough to deal with such loans, but specifically, student loans have taken over the lives of so many youngsters. Students have been complaining about spending all their earnings on returning the loan debts and how the interest keeps rising. And despite all that, the people of the US are still not holding back from taking loans. But what chunk of the demographics are most in debt. Let's have a look at every age group and how much debt they have. 

The Youth (Age 18 - 24) 

The people who fall into this category are the younger millennial and generation Z. It is not a surprise that the top source for this group is student loans. While a lot of students complain about the debt a lot of experts still think that a student loan is a good investment because they do not cost much and are generally exempt from a lot of taxes.  The second biggest source of debt in this age group is credit cards which are generally considered bad for this age group. Credit card loans come with a very high-interest rate, and the people in this group do not possess that sort of finances. Remember when you are taking out a student loan, make sure that the loan amount is not more than how much you expect to earn in the first year of your professional life. If the loan is significantly more than that, then you must not go for it. If you have found yourself in such a tough debt condition, you should check out National Debt Relief for more solutions. 

The Adults (Age 25 - 34)

This age group refers to the older millennial, whose major source of debt is credit card loans. Every fourth person in this age group who is in debt is because of credit card loans. This age group usually has more expenses and that is why they succumb easily to the credit card debts. Around 17% of people in this age group are in student loan debt and only three percent are under mortgage loan debts. 

Middle-Aged and Older (Age 35 - 49)

The people in this age group can be referred to as Generation X. The biggest source of debt for this age group is mortgage loans. Where everyone wants to have a home at this age, it is also important for a person to know that at this age, they are more than halfway through their career and they should already be able to pay it. The second biggest source here is again the credit cards.

Senior Citizens (Age 50+)

Not a lot of people above this age are in debt, but those who have similar debts as Generation X. Most people at this age are also under the debt of a mortgage, followed by credit cards. And as you can see credit card is among the top sources in all the debt types so it is a clear sign for Americans that they should use credit cards