Here's the average amount of debt Gen Zers have

Asia's Tech News Daily

Here's the average amount of debt Gen Zers have
© Provided by CNBC

Outstanding consumer debt in the U.S. is currently around $14.88 trillion, representing an average individual debt of nearly $93,000. While older generations hold a bulk of this debt, the youngest adults in the country are quickly accumulating debt of their own.

Gen Zers, who range from ages 18 to 23, hold an average total of $16,043 in debt, according to data from an Experian consumer debt study. Experian analyzed its database of credit report information to measure the average credit card debt, student loan debt, auto loan debt and personal loan debt for Gen Zers who hold each type of debt.

  • Average credit card debt: $1,963
  • Average student loan debt: $17,338
  • Average auto loan debt: $15,574
  • Average personal loan debt: $6,004

The generation had the highest debt growth of any generation between 2019 and 2020, with the average balance increasing 67.2% from $9,593. Experian said in its report that the increase “seemed to track with age — the greatest growth occurred among the youngest consumer group.”

The next closest growth was that of millennials (ages 25 to 40), whose average debt grew 11.5% from 2019’s $78,396 to $87,448.

Although their debt is growing, members of Gen Z are in a great place to pay it off, says Greg McBride, chief financial analyst for Bankrate. Not only are they young and have plenty of time to pay, but they also have time to build strong financial habits for the rest of their lives.

“The sooner you can get in the habit of saving for emergencies and retirement, the better off you’ll be in the long run,” McBride says.

For most people, McBride recommends prioritizing high-cost debt like credit cards and other installment loans because they tend to have the highest interest rates. This is known as the “avalanche method” and is a money-saver in the long run because it reduces the total amount you pay in interest.

McBride also warns that credit card debt is the most dangerous kind of debt for a young person to have. “Not only do you want to pay that off as quickly as possible, you want to avoid it going forward,” he says.

But everyone is different and there’s no one-size-fits-all strategy. In some cases, the “snowball method” is the best way to go. This strategy has people start with their smallest debt first and work their way up to their largest debt. In 2016, researchers for the Harvard Business Review found that the snowball method actually proved to be the most effective strategy because of its motivating qualities.

“For some people, it makes more sense to have the reinforcement of getting some debts paid off,” McBride says. “It might put some wind in your sails and keep you focused.”

Sign up now: Get smarter about your money and career with our weekly newsletter

Don’t miss: How much money you’d have if you invested $1,000 in Domino’s pizza 10 years ago

Internet Explorer Channel Network
Asia's Tech News Daily
News Related


Met police won't investigate allegations of Downing Street party due to ‘lack of evidence'

© ITV NEWS allegra.JPG The Metropolitan Police said it will not investigate allegations of a party at Downing Street. Outrage erupted on social media after a video leak where senior ... Read more »

105-year-old marathon fundraiser plans to celebrate MBE with champagne

© Steve Parsons 105-year-old Ruth Saunders, from Newbury in Berkshire, with the MBE that she received from the Princess Royal during an investiture ceremony at Windsor Castle (Steve Parsons/PA) A ... Read more »

Covid: True number of UK omicron cases ‘likely to be 10,000 and could hit one million by end of year'

© Getty Images PRI214107171.jpg The new omicron variant of coronavirus is significantly more transmissible than delta – and more than a million people could be infected with it by the ... Read more »

Blizzard victim says she was demoted after reporting sexual harassment

© Illustration by Alex Castro / The Verge Today, in front of Blizzard Entertainment’s Irvine, California headquarters, Christine (her last name withheld to protect her privacy) held a press conference ... Read more »

Bundestagswahl: Lauterbach übernimmt von Spahn – mit diesem Team startet er als Gesundheitsminister

© dpa Lauterbach (r.) übernimmt von seinem Vorgänger viele ungelöste Probleme: ganz oben auf der Agenda steht ein Ausweg aus der Pandemie. Der Mediziner und SPD-Politiker übernimmt das Gesundheitsministerium. Seine ... Read more »

Covid-19 focused sampling drive in Lucknow: Over 9K samples collected return negative

© Provided by Hindustan Times The focused sampling started on December 1 and by December 6 the department had collected 9,598 samples (HT File Photo) In a development that should come ... Read more »

Candace Bushnell Reveals Which Sex and the City Episode Is Her Favorite

© William Thomas Cain Looking back on the Sex and the City column that inspired the hit HBO franchise, Candace Bushnell tells PEOPLE, “I’ve always felt like I was going ... Read more »

‘Jeopardy': Mayim Bialik, Ken Jennings to Host Through Remainder of Season 38

© Carol Kaelson/Quadra Productions; Carol Kaelson/Califon Productions Jeopardy’s temporary hosting solution is extending into the new year. Mayim Bialik and Ken Jennings, who have been sharing hosting duties for season ... Read more »

After CDS Rawat's demise, Centre faces critical succession question

© Provided by Hindustan Times Military police personnel guard the residence of CDS General Bipin Rawat, in New Delhi on Wednesday. (AP) New Delhi: The shocking demise of India’s first ... Read more »

Counterterror specialist among victims of Coonoor crash

© Provided by Hindustan Times Firemen and rescue workers stand next to the debris of an IAF Mi-17V5 helicopter crash site in Coonoor, Tamil Nadu. (AFP) NEW DELHI: Brigadier LS ... Read more »

Riots: Court frames attempt to murder charge against man who pointed gun at cop

© Provided by Hindustan Times Shahrukh Pathan was arrested on March 3, 2020, and is currently lodged in Tihar jail. (HT) A Delhi court has framed charges against Shahrukh Pathan, ... Read more »

Governor to preside over Bhatkhande convocation on December 10

© Provided by Hindustan Times The governor will also award PhD degrees to three students (HT File Photo) Governor Anandinben Patel will preside over the convocation of the Bhatkhande Sangeet Sansthan ... Read more »

Forget Charcuterie Displays — Hot Cocoa Boards Are the New Trend & We Are Loving It

© Provided by Hot Cocoa Boards Just when you thought you’d finally mastered the art of an epic charcuterie display, a new food trend is apparently here to upstage ... Read more »

How to make the best hot chocolate bar

© Used with permission of / © St. Joseph Communications. Hot chocolate bars are the ultimate combination of sweet treat and family activity. Budding baristas can experiment with flavours and ... Read more »

High indoor pollution in Delhi homes, finds Chicago University study

© Provided by Hindustan Times New Delhi, India – December 2, 2021: A thick layer of smog seen developing at Zakhira in New Delhi, India, on Thursday, December 2, 2021. ... Read more »

UPEI board of governors launches third-party investigation into allegations involving former president

© Nicole Williams/CBC Board chair Pat Sinnott said in an email to the UPEI community Wednesday that the board learned about allegations of workplace misconduct a day before Alaa Abd-El-Aziz, pictured ... Read more »

‘Facial mismatch': U.S. Customs stops unvaccinated woman at Canadian border with sister's passport

Face recognition technology spotted a woman crossing the Canadian border into the U.S. with her sister’s American passport and vaccination. © Provided by National Post U.S. Customs and Border Protection ... Read more »

Damon Motorcycles Opens Reservations For New HyperFighter Colossus

© Damon Motorcycles HyperFighter Colossus – Silhouette This electric streetfighter is limited to just 100 units. On December 8, 2021, Damon Motorcycles announced the HyperFighter Colossus, its newest electric sportbike. Thing is, it will only be ... Read more »

Health regulatory body gives the nod to Cape Town company to produce rapid Covid-19 antigen test kits

A new rapid Covid-19 antigen test, developed in South Africa, has been approved by the South African Health Products Regulatory Authority. © Copyright (c) Daily Maverick , All Rights Reserved ... Read more »

Near-Production Chrysler Airflow Electric Crossover Surfaces Again

Chrysler Airflow Concept at 2021 Stellantis Software Day Chrysler Airflow Concept at 2021 Stellantis Software Day Chrysler Airflow Concept at 2021 Stellantis Software Day Chrysler Airflow Concept at 2021 Stellantis ... Read more »

Mark Carney, Stephen Bown named co-winners of National Business Book Award

TORONTO — Former Bank of Canada governor Mark Carney and historical author Stephen Bown have been named as co-winners of the National Business Book Award. © Provided by The Canadian ... Read more »

Finland's PM ‘really sorry' for night club visit after COVID exposure

Finnish Prime Minister Sanna Marin issued her apology via Facebook over the mistake. Bloomberg via Getty Images Finland’s prime minister said she’s sorry for partying it up without a mask ... Read more »

“They Categorically Deny Any Suggestions They Had A Party”: ‘I'm A Celebrity… Get Me Out Of Here!'s Ant And Dec Mock Boris Johnson Over Latest Scandal

The latest scandal engulfing Boris Johnson’s Conservative Party reached millions of viewers on mainstream TV last night as I’m A Celebrity… Get Me Out Of Here! hosts Ant and Dec ... Read more »

Justin Theroux shares an UNSEEN photo with ex wife Jennifer Aniston from the sets of The Facts of Life

Former couple Justin Theroux and Jennifer Aniston reunited during The Facts of Life taping, around four years after their divorce! In a picture posted by Theroux, he was group-hugging Aniston ... Read more »

Healthium Medtech receives US FDA registration for Sri City manufacturing unit in Andhra Pradesh

© Provided by Zee Business Healthium Medtech on Wednesday said it has received registration approval for its Andhra Pradesh-based manufacturing facility from the US health regulator. The company, which focuses ... Read more »

Neha Dhupia misses her kids as she and hubby Angad Bedi attend Katrina Kaif-Vicky Kaushal's wedding; PIC

© Provided by Pinkvilla Katrina Kaif and Vicky Kaushal have invited only the closest of their friends and family to join them in their happiness at their wedding. Neha Dhupia ... Read more »

Indiana Sen. Braun backs businesses setting vaccine rules

© Provided by Associated Press Sen. Mike Braun, R-Ind., arrives to vote on an appropriations bill that funds the government through Feb. 18 and avoids a short-term shutdown after midnight ... Read more »

Finland's prime minister was at nightclub after being exposed to COVID-19 -reports

© Reuters/LEHTIKUVA FILE PHOTO: Finnish Prime Minister Sanna Marin’s news conference in Helsinki HELSINKI (Reuters) – Two Finnish ministers, including Prime Minister Sanna Marin, shrugged off recommendations over the weekend ... Read more »

Moment biker narrowly avoids head-on collision with van at junction – but who's in the wrong?

A HEART-STOPPING video shows a motorcyclist narrowly avoiding a head-on collision with a car that pulls out from a junction — but who is in the wrong? Motorist Greg Marshall ... Read more »

«Wer glücklich sein will, sollte seine Social-Media-Accounts löschen»

Diashow ein Medienpsychologe Stefan Caduff glaubt nicht daran, dass soziale Medien stärker eingeschränkt werden sollten. Viel eher sollten junge Nutzerinnen und Nutzer besser geschult werden. Dies sagt er in Bezug ... Read more »

Yamaha Honors Razgatlıoğlu's WSBK Title With Limited-Edition R1

Toprak Razgatlıoğlu Yamaha R1 World Championship Replica – Front, Right Toprak Razgatlıoğlu Yamaha R1 World Championship Replica – Controls Toprak Razgatlıoğlu Yamaha R1 World Championship Replica – With Rider Toprak ... Read more »

GAME PS5 restock news - Start date and time for next PlayStation 5 stock drop

Good news for console hunters this week after it was revealed that GAME would be hosting one of the next PS5 stock drops. The UK retailer has been one of ... Read more »

DA to review whether NYPD chief broke law by cutting ex-cop loose

NYPD Chief of Community Affairs Jeffrey Maddrey showed up at the 73rd Precinct and ordered officers to void the arrest of former NYPD Officer Kruythoff Forrester, sources tell The Post. ... Read more »

Thousands of people to receive cutting edge Covid anti-viral treatments, Javid says

Thousands of vulnerable people in the UK are to be among the first in the world to receive cutting-edge antiviral and antibody Covid treatments, health secretary Sajid Javid announced today. ... Read more »

The premature death of disgraced Kentucky Derby winner Medina Spirit illuminates the dark underbelly of horse racing

© Tommy Gilligan-USA TODAY Sports The premature death of disgraced Kentucky Derby winner Medina Spirit illuminates the dark underbelly of horse racing Medina Spirit, the Kentucky Derby winner disgraced for ... Read more »

Sheridan Smith looks unrecognisable after three-hour transformation for new show

We’ve seen her in mini skirts and a ginger wig to portray Cilla. And she donned a tracksuit to rap alongside brother Smithy as Rudy in Gavin and Stacey. But ... Read more »

Sophie Wessex looks effortlessly elegant in beautiful corduroy coat

© Provided by Hello! sophie-wessex-carol-concert Sophie Wessex was among royal company at a star-studded event as she showed her support for the Duchess of Cambridge’s carol concert. SEE: Royal Style Watch: ... Read more »

Channel 4 Grand Designs: Kevin McCloud's little known friendships with stars of Harry Potter and Blackadder

It’s a small world when it comes to celebrities on British television. Many of them created friendships for decades stemming from time in school or on the sets of our ... Read more »

Work from home again: UK tightens rules amid omicron spread

The Associated PressBritain’s Prime Minister Boris Johnson speaks at a press conference in London’s Downing Street, Wednesday Dec. 8, 2021, after ministers met to consider imposing new restrictions in response ... Read more »

Tenn medical board takes virus misinformation policy offline

NASHVILLE, Tenn. — Tennessee’s medical licensing board has voted to remove from its website its recently adopted policy against the spread of coronavirus misinformation by doctors, acting under pressure from ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic