• 7 hours Can The British Pound Overcome Brexit?
  • 13 hours Is A Gold Breakout Near?
  • 1 day Federal Reserve Downgrades U.S. Growth And Cuts Rate Hikes
  • 1 day Disney Beats Out Comcast In $71.3B Mega-Merger
  • 2 days The Feds Continue To Prop Up Equities Markets
  • 2 days Bejing's Sway In South China Sea Is Fading
  • 2 days Saudis Eye Billions As Stocks Get Emerging Market Boost
  • 2 days Airbnb In Acquisition Mode Ahead Of IPO
  • 3 days Gold Hangs At $1,300 Ahead Of Fed Meeting
  • 3 days Champagne Sales Slow As European Economic Worries Grow Louder
  • 3 days Putin Signs “Digital Iron Curtain” Into Law
  • 3 days Russian Metals Magnate Sues U.S. Over Sanctions
  • 4 days Tesla Looks To Jump Into Indian Market
  • 4 days Global Banks Lay Groundwork To Re-Inflate Asset Prices
  • 4 days Homeowners Experiment With Risky New Investment Trend
  • 4 days U.S. Tech Stocks Look Increasingly Vulnerable
  • 5 days De Beers To Expand World’s Most Profitable Diamond Mine
  • 5 days Ford CEO Gets Raise After Massive Layoff Round
  • 5 days Germany’s Flirtation With Recession Could Cripple The Global Economy
  • 6 days Where To Look As Gold Miners Inch Higher
Tesla Looks To Jump Into Indian Market

Tesla Looks To Jump Into Indian Market

Elon Musk is not giving…

The Energy Industry Has A Millennial Problem

The Energy Industry Has A Millennial Problem

Talented millennials with science and…

  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