• 2 hours Facebook Scrubs Over 2 Billion Fake Accounts
  • 8 hours Dow Scrambles To Avoid Fifth Straight Weekly Loss
  • 1 day Is This The World’s First Truly Democratic Stock Exchange?
  • 1 day India’s Wealthiest Set To Hold $23 Trillion By 2028
  • 1 day First Quarter Profits Slip For World's Top Oil Companies
  • 1 day The Yuan May Be China's Biggest Weakness
  • 2 days Hedge Funds Having A Banner Year
  • 2 days Disney Heiress Asks “Is There Such A Thing As Too Much?”
  • 2 days BHP Turns Bullish On EVs
  • 2 days Investors Turn Bullish On America’s Nuclear Decommissioning Business
  • 3 days The $90M Inflatable Rabbit Redefining Modern Art
  • 3 days Huawei’s Fate In The Air
  • 3 days Tesla Slashes Prices Again
  • 3 days The Modern History Of Financial Entropy
  • 4 days Italy’s Central Bank Embraces Sustainable Investing
  • 4 days Trump Lifts Metals Tariffs To Cool Simmering Trade War
  • 4 days Researchers Push To Limit Space Mining
  • 4 days Could China Start Dumping U.S. Treasury Bonds?
  • 5 days Is Winter Coming For HBO?
  • 5 days Rise Of EVs Signals Peak Gasoline
Italy’s Central Bank Embraces Sustainable Investing

Italy’s Central Bank Embraces Sustainable Investing

Italy’s central bank plans to…

Huawei’s Fate In The Air

Huawei’s Fate In The Air

The U.S. Commerce Dept. said…

  1. Home
  2. News
  3. Breaking News

Millennial Debt Soars Past $1 Trillion

Millennial Debt Trillion

Debt held by Americans aged 19 to 29-years-old exceeded $1 trillion at the end of last year, according to Bloombergciting the New York Federal Reserve Consumer Credit Panel. 

The debt load marks the highest exposure for the group since late 2007 at a time when younger adults under 35-years-old have decreased their spending compared to previous generations. A Friday University of Michigan survey determined that this was likely due to weakened job prospects, student loans and delayed marriage. 

With millennial consumers not consuming, several policies to boost young adult spending have begun to enter the political dialogue, such as student loan debt forgiveness, according to the director of the University of Michigan consumer survey, Richard Curtin. 

Student loans make up the majority of the $1,005,000,000,000 owed by this cohort, followed by mortgage debt. New mortgages among young adults today remain quite a bit below levels incurred in the early 2000s. This may suggest adults are waiting longer to buy homes and may opt to rent for a longer period of time than previous generations. -Bloomberg

(Click to enlarge)

The lion's share of overall consumer debt is mortgage debt - however, student loan debt, the second largest consumer debt segment, is growing much faster at a rate of 102 percent since 2009 vs. 3.2 percent for mortgages. 

Student loans are the second largest consumer debt segment and surpassed home equity revolving debt, auto loans and credit card debt balances shortly after the recession ended.

At the end of last year, auto loans were the third largest portion of debt composition in the U.S. followed by credit card debt. Overall consumer debt reached a record $13.5 trillion. -Bloomberg

(Click to enlarge)

Peak debt for more Americans occurs during mid-life years and typically declines as people age. 

What's worrisome, according to the report, is that implied student loan debt delinquencies exceeding 90 days dwarf other loan type categories. 

"Once a person is the subject of third party collections from their student loan delinquencies, their credit profile will be hindered for years. Missing a student loan repayment can also harm an individual's chances of getting a mortgage," notes Bloomberg

Student loans constitute around 40 percent of the total debt balance of 90+ day delinquencies for implied debt in arrears. 

(Click to enlarge)

By Zerohedge.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment