In Michigan and across the US, millennials, a term that refers to individuals who were born between 1981 and 1996, are struggling with debt. This age group earns an average income of slightly over $35,500 per year but has only $8,000 in net worth. Based on Federal Reserve data, millennials owe more than $1 trillion in debt on credit cards, mortgage and auto loans, and other kinds of borrowing.
Credit card debt has a much higher interest rate than other forms of debt. Millennial credit card debt has risen 7% recently to an average of $4,712 per individual in this age group. Older millennials who are turning 39 years old in 2020 have an average credit card balance of $6,675, and younger millennials who will turn 24 years old in 2020 have an average credit card balance of $2,288.
Millennials have had a more difficult time purchasing homes versus other age groups, and this has affected the number of millennials who have mortgages. Millennials with mortgages have an average debt load of $222,211 associated with the mortgage. This figure is a 5% increase over 2019.
Auto loan debt has been a problem for millennials with the fastest growth rates among any generation. The average millennial owes $18,201 in auto loan debt as of the second quarter of 2019. This figure has risen 28% over the last seven years.
The figures above are concerning and can lead millennials to declare bankruptcy. Bankruptcy is a viable way for millennials to work out financial difficulties caused by job loss, unexpected medical expenses, divorce or a failed business. It is important for millennials to have the right bankruptcy attorney to help them through this process for a fresh and brighter restart.