20-year average debt

Debt is a part of the average American’s life, and you can start accumulating it in your 20s.

New findings from Experian’s 2020 credit report show the average Gen Z consumer (aged 24 and under) has approximately $ 10,942 in debt, excluding mortgages. Likewise, millennial consumers (aged 25 to 40) have an average of $ 27,251 in non-mortgage debt, likely on credit cards, auto loans, personal loans, and student loans.

If you own a home, your debt balances may be above average: Homeowners in their 20s and early 30s have between $ 172,561 and $ 232,372 in additional mortgage debt.

Millennials and Gen Z represent a wide range of ages and credit profiles, but both include consumers in their 20s. Having over $ 10,000 in debt might seem like a lot to someone early in their career, but it’s not so bad as long as you’re strategic with your repayment plan.

Using the latest data from Experian, CNBC Select took a look at the average 20-year consumer debt amount so you can see how you stack up.

Data shows that Gen Z credit card balances fell from $ 2,230 in 2019 to $ 2,197 in 2020, and that younger consumers had fewer missed payments than their Gen X and baby counterparts. boomers.

Meanwhile, Millennials have seen their credit utilization rate drop by 5% and have an average credit card balance of $ 4,651 (up from $ 4,889 in 2019).

Although our youngest Gen Z consumers are showing signs of developing good credit habits, it’s important to prepare for the future so that young people can stay on track.

Life gets a lot more demanding in your 30s, and last year’s Experian data shows what kind of a toll it can have on your finances:

In 2019, these were the average debt balances by age group, including mortgages:

• Gen Z (18 to 23 years old): $ 9,593
• Millennials (24 to 39): $ 78,396
• Gen X (40 to 55 years old): $ 135,841
• Baby boomers (56 to 74 years old): $ 96,984
• Silent Generation (75 years and over): $ 40,925

As you can see, from 23 to 39 there is a huge potential for increasing debt. In the decade of your 20s to 30s, your responsibilities intensify as you prioritize your long-term goals. The desire to settle down, start a family, go on a memorable vacation, and / or move to higher cost-of-living areas with better job prospects might motivate your financial decisions more than at the start of your life. in your twenties, when priorities like getting a college degree, finding your first apartment, and learning how to get by on an entry-level budget were most important.

To start preparing for the future, it’s good to know where your finances are today. First, pull out your free credit report and sign up for a free credit monitoring service.

Experian offers a free credit monitoring service that allows you to register without providing a credit card number and gives you a single overview of your entire borrower profile. See all your credit cards and loans, along with their balances, in one place. Keep track of your payments on time and monitor your accounts for fraudulent activity.

If you want a more robust service with better fraud protection, check out IdentityForce® UltraSecure and UltraSecure + Credit, which offer the most comprehensive security features that monitor your information across a variety of sites and services, including dark. web, court records and social networks. media (checks your accounts on sites like Facebook, Instagram, and Twitter for inappropriate activity that may be viewed as profane or discriminatory).

Consumers receive alerts about potential fraud on your bank, credit card and investment accounts, as well as the use of your medical ID, social security number, and address.

Once you know where your credit is, take action to get your finances in order. Make a plan to pay off your debt, read tips on saving for retirement, and learn the basics of credit cards. That way, when you decide on the next step in your financial journey, you are well prepared for what lies ahead.