Members of Generation X are more likely than those of other generations to be heavily in debt. A significant portion of Gen Xers don’t believe they will ever be able to pay off the debt they have.
Nearly 25% of Gen X believes it’s ‘nearly impossible’ to pay off debt: survey from Yahoo Finance
“According to 2017 statistics from credit reporting agency Experian, the report found that Gen X is carrying roughly $30,000 of debt on average — excluding mortgages.”
“‘Gen X is facing more financial pressures than other generations did when they went through the same lifestage, says NerdWallet’s Kimberly Palmer.'”
“This is reflected in a survey from Lightstream, the online lending division of SunTrust Bank. Almost 25% of Gen X-ers it surveyed say it’s ‘nearly impossible’ to pay off significant debt.”
“’Gen X is at the most expensive time of their life,’ Palmer explained. ‘Even though mortgages and student debt might not be included [in Gen X debt load surveys], it still explains the pressure and why they’re turning to credit cards.'”
“‘That explains the spike. Credit cards are the one thing — it’s the debt that goes up and down a lot depending on a person’s needs. It’s the safety net that they turn to,’ she said.”
From Debt Disaster is Real—Especially for Generation X from 401k Specialist Mag
“The generation of flannel and grunge are heading into their highest earning years yet, compared to other generations, Gen Xers have also accumulated the most debt.”
“In fact, a recent LightStream survey found that one in four Gen Xers who are currently in debt say they are not confident in the way they manage it, and 22 percent don’t see a way out.”
“Generation X is often referred to as the new ‘sandwich generation’ because many of them are responsible for both raising their own children and caring for their parents.”
“Just one-third of Generation X investors are confident in their ability to address financial concerns and meet their long-term financial goals—the lowest among the generations, according to a 2017 MFS Investment Management survey that mirrored the LightStream results.”
“Seven in 10 Generation X investors say they have delayed, or expect to delay at least one major life event, such as buying a house, saving for their children’s education, starting a new career and ultimately, retiring.”
And while all generations have seen an overall increase in debt over the previous year, Generation X once again leads the way with debt in American families carrying more credit card debt than last year: report from Yahoo! Finance:
“The average American household carries roughly $7,000 in revolving credit card debt, according to the 2018 household debt report by NerdWallet. Last year the figure was $6,081.”
“Revolving debt is defined as a balance that is carried from one month to the next. This year’s report focused on revolving debt because it is a ‘more accurate indicator’ of financial hardship, NerdWallet said.”
“Month-to-month credit card balances increased to $420 billion this year. That’s roughly 5% more than Americans were carrying last year. Even though the economy is on solid ground, there’s been some wage growth and the unemployment rate is holding steady at 3.7%, higher costs have added to the increasing debt.”
“The biggest reason for the increase: expenses are rising faster than incomes. ‘One that jumps out are medical costs and food costs away from home. And student loan forbearances are also adding to debt,’ says Kimberly Palmer, a NerdWallet specialist.”
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