Why Americans in Their 30s Are Racking Up Historic Debt | WSJ Your Money Briefing
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- Опубліковано 27 тра 2024
- Total debt for millennials in their 30s hit more than $3.8 trillion in the fourth quarter, a 27% jump from late 2019, and the steepest increase of any age group.
Host J.R. Whalen is joined by WSJ reporter Gina Heeb as well as 31-year-old Stacey Coquelin, who is struggling to contain rising debt as well as her daily expenses.
0:00 How bad has debt gotten for millennials since the pandemic?
1:14 How millennial debt compares to other age groups
1:41 How millennials got themselves into tough debt situations
2:35 An interview with a 31 year-old mother of two about her finances
5:10 What debt for millennials looks like moving forward
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#Millennials #Debt #WSJ
Responsible reporting would have been addressing the fact that wages are not keeping pace w/ cost of living. At thirty I’m fully employed in an office job (not fast food, retail, etc.) with two roommates and margins are incredibly tight. That’s the larger long term problem here, and we’re focusing on the nuances of a pandemic & on people with extraordinary life circumstances multiplying the struggle (single parenthood) which is misleading. I’m responsible, work hard, avoid extra spending, am responsible ONLY for myself & it’s still impossible to consider living alone in a way that’s money-wise.
The boomers grew up in a America where the American dream was obtainable. Our parents WWII generation wanted us to do better than them. 4 years USF and 2 years FAU cost total $7,500 in the 70's. First house $22,500 in 1977 now worth $400,000. After WWII America was the largest industrial power in the world for 35 years. Globalization outsourced you generations future to China.
At 30 with roommates? Time to get a SO….
CEO pay meanwhile continues to soar to unbelievable heights. The wealth in this company is all being sucked to the top.
The only way to make more money is to swap jobs every 2-3 years. I have a degree + 9 years professional experience at an office technical job, and new hires just out of college are making more than me. I like my job and I’m good at it, but I’m underpaid by 20k-30k and it’s unsustainable to stay here.
@@LaSombraa Considering decreasing marriage rates and increasing divorce rates, wouldnt bet on it.
I have never had credit card debt in my life. I can’t even imagine the stress. I paid off my student loan and my only debt is my mortgage. I’ve always been very conservative but also fortunate that I’ve never had A medical crisis or anything major like that. Or kids.
No kids. That was smart.
❤ wow 🤩 you are very financially literate and you are superb in paying off your student debt on your own
I don't have a credit card either or even car debt (I do not own a car), but I do have student loan debt. It's the only debt I own and I never want to own a house or condo.
30 somethings are racking up historic debt because the cost of living is at an all time historic high. No other reason.
Exactly. Folks are paying $2-3k for friggin rent!!! The middle class CANNOT afford that.
Thank Joe Biden!!!
It’s not all the rent, it’s making decisions like putting your kids in all these after school activities, spending on non-essentials. These people need to upskill if they want a higher lifestyle of living
I wouldnt say no other reason.
THIS
Being a single parent is the easiest way to get into debt. Be responsible as to who you have children with. That cannot be stressed enough!!!
Some of us are single parents because the other parent died 😪 stop judging
@@pearlperlitavenegas2023 - I think P is talking about MOST single parents, not every single one of them.
@@pearlperlitavenegas2023 True but rare.
Yes, be sure he will be able to pay support after you dump him.
That's like telling a DV victim "you should have chosen a partner who wasn't going to hit you".
I just don't understand how anyone can allow any Credit Card debt to be unpaid when it's due? Do they not realize that the Interest rate is about 24%?
It’s free money
@@jaydubya9265 Lol, if that’s really what they think, may god have mercy on their soul
That female reporter (Gina) didn’t compare or bring up that our parents (millennials parents who were millennials ages 80s and early 90s) didn’t have NEARLY the same economy.
The generation before grew up during the Great Depression eating tumble weeds and rebuilt the country. The issue is the younger generations have had it too easy and is lazy and irresponsible with money. A generation where the “poor” are obese no surprise they don’t have any money discipline. That is learned
Our parents in their 30's dealt with 18% inflation in the late 80s!
I really feel bad for my generation. I was lucky to get into a home with a insane interest rate before the pandemic. Now I look around and think people have no chance at my age anymore. We make a combined income of $140,000 and pay for one child to go to daycare and we can barely save money. It's insane
I worked nights, my wife worked days. It can be done
@@davidheinzmann4403 Takes a lot of self-discipline, but it can definitely be done.
It also depends on region you live in. In California, Seattle, NYC, etc. it would be much harder than somewhere in the middle of nowhere.
@@privettoli middle of nowhere pays middle of nowhere wages. We are now competing with outside money. It’s hard everywhere.
@@angelinimartini you're right, it depends on whether you're working remotely for another market or not. At the same time, saving money in a more expensive area might give you a boost in a cheaper location.
It is easy to take on debt and even more so with inflation and housing going crazy! I've always lived below my means due to growing up poor. Now I'm 28, earn $112k+, no debt, and over $100k net worth so far. Still can't afford a house out here, but when I can it'll be small and I'll have a roommate.
This is my exact situation aswell. I told myself I wanted to get in the 100k a yr club before I turn 30..... But now after accomplishing I realize it doesn't mean a thing in this economy.
It's the mindset that matters! I also grew up in a family that watched money, so we lived very poor. I also carry lots of the habits into my life.
When I bought my first house after college I got roomates too. I also drove an old 2-door car, gave up drinking and ate a lot of ramen.
Find a partners you will make 100-200k. With the extra salary it is a lot easier. The world isn’t meant for you to live alone since we had woman join the workforce. You can if a decent income but it isn’t easy still.
You make 112k a year and still can't afford a home.
That's insane!
Are you in California?
It's basically the same here in Florida.
The game has changed. Stop using credit cards, eat at home, invest what you can, stay away from debt, save, save, save. Reward yourselves for your discipline and live within your means. If you follow this plan you will be in a better place.
Yep!
always use credit cards because 1) it builds credit which will help lower borrowing costs when you apply for a mortgage and 2) rewards. just treat it like a debit card so you don't overspend
Use credit card RESPONSIBLY
@@grantcanty7294 cc's with great precaution. They are not helpful to everyone and the banks NEVER lose out on money from ppl using them. I personally don't use them and have done great without.
This sounds sweet on paper but with inflation and the wages not matching it’s really hard to save. Mind you a lot of us don’t have access to government assistance and still have to pay ridiculous rent prices (it’s almost impossible to find rent controlled apartments) food is just as expensive making it at home as eating out and not to mention medical bills, utilities, phone etc. if you have any money to save consider yourself lucky compared to the average wages. Times are not like in the boomer days.
Trick is to never borrow money.
Just live with your parents till your 80
@@innocentrage1 nothing wrong with that. Entire world outside of USA does it.
@@innocentrage1 I have done a lot of that, I see no problems. Live on $200.00 a month rent with them and able to save monies as much as possible and increased my biweekly contribution to my 401K to the SP500 index ETF. It is hard, but it took me a lot of discipline, loyalty, humbleness, and money management skills.
@@innocentrage1 get a better high paying job. Oops you got a useless liberal arts degree?!
@@innocentrage1 my parents kicked me out 1 month after I graduated high school (2004). They said they had done their job and the rest was up to me. So, I never really had a chance to save money. It's always been a challenge just to avoid the gutter.
I like how he asked ‘how did millennials get themselves into this situation,’ as if they opted for this path on their own. Should we start with Reagan or the financial crisis or the pandemic or the other financial crisis? Or maybe inflation and generally growing costs or business-ification of all aspects of life (like housing). Or unrealistic expectations like having to have a college degree for every single job while being charged crazy amounts for education and the primary “solution” is student loan…debt. Annoying.
Yes I really hated how he phrased that...
dude my landlord charges me $2400 for rent and Im sure he just pays $1200 a month for it and keeps the rest
@TommyGoGetter I went to medical school and accrued large amounts of educational debt. I bought my first home at 37. Regardless, an anecdotal experience is by definition not the norm.
It's a blame game, because clearly those with power dont actually have any.
Until you decide to deviate, then suddenly
..
No one in finance talks about underlining conditions that lead to issues. Sure many don't have an issue but plenty do. I also say we can't make the same incomes have higher expenses as a group and expect many to avoid poverty and being broke.
When I was in my thirties, I racked up debt. What disturbs me is seniors who are in debt.
They're dead soon, they don't care. Their kids better not accept the debts though.
@@nickstone1167 sadly they won't have a choice in states with filial laws.
I hate to see so many seniors homeless on the streets. I shudder to think what it will be like when we age.
I received two stimulus checks total, $1200 in the first round and $1400 in the second split into two deposits. I saved them both; due to the rise in cost of housing and everyday goods vs the rate of increase in my pay I am at a net negative compared to my ratio pre pandemic. I am making more every year, but this annual increase is well overtaken by the rising costs. My spending habits have not changed what so ever because I live on a strict self imposed budget. The stimulus checks did not effect how I spend money at all and I am still losing. I am a single man taking home $50K a year in Tx and I am struggling. Stimulus checks are not what is causing this ‘millennial spending issue’. This is not a matter of self control.
Klarna, Afterpay are a new kind of debt that makes it easier for young people to fall into debt traps
I am seeing these type of third party finance tech companies being attached to Amazon, Apple, Walmart, and Kohls. Scary. :|
There could be a million reasons why our generation has taken on so much debt, but from personal experience, the number one reason is non essential spending. Doordash, eating out, new cars, closets full of clothes, alcohol, streaming services, gym memberships, vacations, on and on and on. I have friends who make 100k a year who are drowning in debt more so than the ones who barely make 50k. Again, so many reasons, but in my circle of friends and family, it is over spending and not knowing basic budgeting. We are a one family income, have four children, live below our means. We have a car and house payment, no student loans, very minimal debt (from the non essentials i mentioned earlier). The pandemic scared us smart.
No.
Just stop.
Cola. Cola. Cola.
The insane divide between the rich and the poor.
The destruction of the nuclear family.
It's not door dash.
Inflation is through the roof while the wages have gone up just a bit.
That “stimmy” money wasn’t free… politicians and bankers made out like bandits 🤡
Inflation is inevitable when you stop importing cheap chinese products
I got a 45% raise last year switching jobs but now its like I hardly made more money because of inflation.
BIDEN S AMERICA!
Well I had Cancer, and had to take a loan out to live while I had treatment, no fault of my own but here I am.
a large part of being broke is due to single parent households. it's just not economically viable to raise a child by yourself, and many of us millennials were told you can do it on your own... no actually you cant. the other part is the cost of housing and transport. factored in, even if you own your own car outright, your cost of fuel, insurance, new tires, repairs and rent/mortgage is going to be around 50-60% of your income. combine that with rising costs of food and a job market that really has never recovered from the 2008 disaster, it doesnt leave alot for you at the end of the month.
The market recovered fine after the 2008 scene...and in fact, it was the best time to invest.
And WHO told you that raising children on your own could be done by one person? Be careful with excuses.
single mothers complain the most. But… 75% divorces are initiated by women. Among women with college degrees percentage rises to 90%! So if you choose to leave your husband because you are bored take responsibility and stop complaining.
@@michalstelmach4203I'm betting they're not divorcing due to being bored 🙄. What kind of stupid lack of real life do you come from? I'm very much against kids unless it is a two parent household that is financially well off. Few moms are divorcing due to boredom. Moms have a full time job managing kids. There isn't any weekend off. They can't leave kids at work once evening arrives. It's a constant job. The dad that provides the other half of the genes has to be fully invested too. Kids are a long taxing commitment. Quite commonly a mom gets divorced due to some form of toxic abuse. In this case, the best thing is to separate. Kids cannot be exposed to such an adverse experience in the home. People need to take this family thing seriously.
Despite what everybody is saying, the cost of living is actually cheaper now than it was 30 years ago when I was paying 17% interest on my mortgage, which was 85% of my wage for at least eight years
Who said that?
Treat a credit card like what it actually is: an invitation to fall into a hole.
It's also the generation that loves social media too
This will not end well.
Yup, America is screwed. So are many Western countries. Most Canadians can't even afford housing and Trudeau is letting in 400,000 people a year, who will all move to Toronto or Vancouver. Clown world.
Not to sound like a dick but given how the times are, maybe she should have stopped at one kid?
I owe I owe so off to work I go…
It's a cycle. Too many people think that we are experiencing things for the first time, but just are ignorant that life has never been 'easy' and perhaps the difference over time is that people are more wasteful and spend more on entertainment and luxuries.
It seems that consumer debt will rise unimpeded until lenders clamp down. They set the ceiling vs any floor being created
Americans living on credit cards. Excellent way to grow your wealth.
Congrats on dealing with your debt, Stacey! Lot of respect for the determination.
I've seen a lot of comments noting that the 60's were a great time for some in the US. If we had a candidate advocating for that sort of tax structure/etc. they'd get called a radical socialist or similar by WSJ/others. Look at the tax rates, company pension rates, school funding, etc. in that time.
The powers that be really need to get this under control. The greedflation/consolidation/and high barriers to entry for starting businesses have placed 2 generations in a tough spot. And the only reason this has happened is because a whole generation refused to pay it forward when it comes to social programs. They cut cut cut for some temporary marginal tax relief.
The US birth rate will likely decline sharply if these factors remain. That'll really spell doom for the US economy should it happen.
@@summerrose4286 Am I correct to read that you think people just live off the gov now? Which of these programs can I hop on? What are the limits/requirements?
The 60's certainly weren't sparse. Housing to median income was at a much smaller ratio. Healthcare was cheaper. Companies offered pensions. Good paying jobs could be had without a college degree. Teachers, libraries and schools were better funded. The SSI age was lower.
Programs are more means tested now (See ADFC -> TANF) etc.
Greedflation. That is really what's happening.
This debt surge for Americans in their 30s is concerning. It's a reflection of financial challenges many face today. The younger generation often battles student loans, housing costs, and job instability.
Can we talk about all other aspects when it comes to discussing debt; such as car payments; rent; average utilities; income, retirement balances; etc
I've gathered data over the last year or two and Americans are paying More for everything across the board especially if you're millennial I read somewhere where millennials pay half their earnings and just rent alone and that over a course of a decade of millennial will end up paying $100 to $200,000 in rent
Wages are too low as opposed to the cost of living and instead of raises, businesses issued back handed pay cuts, with credit cards.
I treat cc as debit and not see available credit as “free money”
6 words that sealed my financial fate: student loan debt; public school teacher.
The positives: zero credit card debt (paid that all off over the course of a couple years) and no car payments (paid in full) . Still, the student loan debt is crushing. And yes, I do work 2 other jobs in addition to my main job and live a very minimal lifestyle (and no kids) .
what's your student loan amount?
I'm not a school teacher but student loan debt crushed me too for a few years. Sometimes I question why I decided to go back to school but in the end I'll say it was worth it. Since I graduated from college I've been putting every dollar possible to paying off debt and even started rebuilding my savings at the beginning of last year. The past few years sucked but my combined savings will exceed $100k by next year. I hold a regular job so its not like I'm making six figures or anything remotely close to that. Just pure discipline and sucking it up while I get my head above water. Now, my only issue is trying to purchase a house with these insane prices that we have today. For the time being I'll have to continue saving and hope my salary can support a mortgage payment in the near future. Anyway, stay the course and good luck!
@@cartel_papi 130,000. 2 degrees: special education and school counseling.
@@MrSupernova111 thank you and best of luck to you too!
Good luck. There are a number of strategies for accelerating the debt payoff. If you can stick through the difficulty, the retirement plan will be very beneficial for you. Good luck!
Please stop these audio-focused videos. It's so low-effort. Put some work into it...
stop watching then. even better, stop commenting! thanks
@@bullpup1337 you are totally right. Asking for effort is one step too far! The gaul I have...
@@tupisamba211 actually yeah. You sound like an entitled douche bag. Nobody here owes you anything. Make better content yourself if you think it is such a low effort.
Need more news videos speaking on this issue.
Using credit cards when you're unable to pay off the balance can be a significant financial mistake. It's recommended to avoid using credit cards altogether if you're unable to pay them off before closing date,, except for essential expenses like rent or food in cases where you don't have the available funds. However, it's advisable to explore alternative options such as finding cheaper rent or visiting food banks before resorting to credit cards.
These are basics in finance management...it's astounding people don't know about this...even well educated
I had my Amex when I was a student at MSU, they set up tables for new applications. It got my attention because they gave away huge beach towels with Amex on it😁 till this day, whenever I call to redeem my cash back bonus, they always thank me for a royal member since 1994.
I always pay off before the due date each month. Sometimes when I travel in the early 2000, I would Walk into an Amex travel office to pay my bills in Paris and Bogota Colombia. Now I can schedule payment in advance with direct payment transfer, it's useful when I travel out abroad.
Growing up poor taught me to only spend what I can afford. I survived the housing bubble, during late 90"s, everyone I knew were buying a house. I have a commitment problem 😅, I cannot go thru tons of documents when buying a house. It turns out renting is better option for me as a world traveler.
I survived the 2008 financial crisis buy taking a teaching job in China from 2009-2013. Now, I'm trying to survive the post pandemic job crisis, inflation, high rent etc. I still don't have credit card balance, only spend on food and toiletries.
I'm proud of walking out of H&M or Forever 21 not buying anything 😅 I talked myself out of buying things I don't have an occasion for. When I took 10 days off to the DC cherry blossom festival on April 1- 10, I only spend on food and Lyft, all the museums , event are free in DC, plus cheap flights+ hostel.
This sounds like fantastic advice for kids going into college that was never taught how credit cards work.
Why not use free imaginary money to live the lifestyle you want? You can just declare bankruptcy or settle the debt, so you get 10s of thousands of dollars for free, there's really no consequences other than your credit score taking a hit
@@JoyofBooking I hope you're not serious. Good luck finding rent after bankruptcy.
I love to hear that Stacey is working the Ramsey plan!
I paid a plumber $100 to show up and look at my sink last week. He was here for about 30 minutes. And I paid him $200 in total. I'm pretty sure he didn't go to college. His truck was a lot nicer than mine too.
Check local plumbers that have advantage plans. Simple fixes are free ie unstopping a sink.
Yeah, the trades are where its at if not a good college degree. Most degrees suck. Trades are always a good option. It was my second choice. Did college and now at 28 earn $112k+, no debt. We might make the same but I work from home, killer benefits, and will continue to easily grow in income due to my career vs the trades. But many trades people make 100k easily.
I paid $700 last winter for an hour
Yup, plumbers and electricians are gouging people. Furthermore, I Have yet to meet an honest one too.
Your PhD tenured professor will need a plumber. But a plumber probably doesn't need a professor. He just needs people that need a plumber. Same goes for every other vital necessity like the power plant, water plant, and especially those that provide us with air conditioning! It's HVAC appreciation day every day!
WSJ: Americans in their 30’s…shows pic of a 54yr old woman and a 13yr old girl
Scary that some people have huge debts that’s so stressful
If you have huge debt it’s easier to just stop paying them off all together withdraw your money into cash work under the table or get a job that makes tips and pretend like its not there.
Spending money on useless stuff merely serves as a distraction from facing who we reallt are. Once the useless stuff no longer distracts us, we go out and spend more money on more stuff to distract us....until it doesn't anymore. And the cycle continues. The key is to make use of things that cost no money and still distract us.
I agree. As the pandemic died down a bit and I took a look around, I realized all the stuff I had purchased in anticipation for a life that still hasn't come back 100% (clothes, shoes, etc). So I put myself on a no buy for 6 months and have found it has been really great. My new goal is to avoid buying anything until I can use up everything I own. I have also been donating and giving away tons of stuff. Consumerism is definitely something we easily fall into if we aren't self aware.
Would love to see a review like this of those of us in our 40s…always been focus on boomers and millennials, rarely much on gen X
Gen-X was small enough to where it had opportunities to fill in the gaps of Boomer deficiencies in the workforce. If it had been a larger generation, it would have really suffered due to the seniority of the Boomers. Millennials have been waiting for a good 20 years now for the Boomers to finally retire so that they can move into positions that offer a wage that can sustain a family.
@@AV57 mileniala didn’t want the jobs that paid well. Their is high paying jobs all over we have unfilled or had to fill with overseas people. After gen x the people didn’t want to do the jobs that paid well they wanted to do what they wanted and they paid for it.
@@AV57 lol basically saying we at 30 want management roles that require decades of experience. Th is is why your generation will never not be poor. When boomers retire those jobs will be taken by hungry young foreigners or locals not the milenials that gave up lol.
@@AV57 Millenials entered the workforce 20 years ago...no way the millenial generation is ready to fill slots of experienced boomers, let alone been waiting 20 years...except those that feel entitled to go from just entering the workforce to taking over for senior leaders, which is why so many have the reputation of entitled brats and keyboard warriors.
Exactly. As a 44-year-old Gen-Xer, I'm "way too old" to care about Millennial problems. They vehemently kept us out of the workforce and now they own it, but they don't seem to own any mirrors.
First of all don't be a single parent.
Anyone struggling with their finances needs to listen to Dave Ramsey and actually do what he says. I was $120,000 in debt in 2019, but I now have a positive net worth of almost half a million because I followed his baby steps and realized that I was the problem and I was the only one who was going to fix the issues I had with money. Avoid debt at all costs.
How in the heck did you climb out of that hole so fast?
@@tysonreuter5788 my side hustle turned into my full time job and I've been able to increase my income big time. Your income is the biggest tool you have so I'm always looking for ways to increase it
When I am low on cash, I go back to my parents' place to eat
Those silly millennials blowing their money on luxuries like child care, shelter, and groceries.
Miami is expensive. No way I could maintain my lifestyle over there.
😂😂😂
And iPhones, Nikes and Netflix subscriptions
And buying from influencers, expensive hobbies etc..
Ah yes because those women who blew hundreds of thousands of dollars on a college degree only to have children out of wedlock, yes, so smart.
My wife has no student debt because she knew at a young age that she wanted only to be a wife and a mother, so that "luxury" will be unnecessary when we have children.
Of course her family disowned her for it, but that freed her to be with me.
I am infinitely blessed.
So sorry that most women choose the harder path, but in the end, you will learn...
No DISCIPLINE, no SELF DENIAL, no, STREET SMARTS. Too much SELF INDULGENCE, sense of ENTITLEMENT and ENVY of what others have.
Stacey is a single mother. No wonder she is struggling. Bad choices of fathers!
I've been taking care of myself since 17 and most of my millenial peers have been taken care of or subsidized by parents until we were in our 30's. now they are trying to get better degrees and have kids while figuring out how to be an adult.
Fr
I'm 37 and have a large group of millennial friends. None of them have been subsidized by their parents after 18.
@@AV57 Very rare to not have moved back home, had a healthcare, insurance, parent plus loan, co-signer, been taken on vacations, received Money for leisure, textbooks, gas or help with a payment during that period. Congrats to you all! sheesh I'm 30 and some of my friends started paying phone bills a few years ago
I, since 15. Now turning 30, still figuring things out.
@@David-mu1wz it’s not rare.
My husband and I gave up on pursuing buying a home.
Wages aren’t keeping up! We have a family of 3 living in a major coastal city on 80k /year. Older family keeps telling us how much we a failing, telling us we should be able to buy a house, own two cars, go on vacation. We are extremely responsible with our money and have no credit card debt, we are working down a student loan we can’t afford everything people keep telling us we should be able to afford but we can’t.
People really desperately need to learn to be intentional with their finances... I graduated from university in '15, paid off $67k in student / car loans, then saved for a small down payment for my first home... I've not paid aggressively on it because of historically low mortgage rates- rather I have just boosted emergency reserves to $20k, meanwhile saving $108k into my retirement. It helps living in the Midwest- very affordable. I feel very grateful to have reached this financial standing, nearing age 34.
People who speak like you typically feel that you are above others; do you want an award certificate for saving/paying off all of your debt? Congrats. Do you know how many people are NOT able to do that, even when managing money intentionally? This comment was very tone deaf, especially in the economy we find ourselves in.
@@travelpro23 my bad for celebrating my victories 🤣
@@bSQUARED08 you literally stared off with saying what others need to do with their money (not knowing anything about other’s financial situations), and then gloated about you paying off things, on a thread that’s literally about people being in debt due to not having enough to make ends meet. Maybe you should celebrate and pat yourself on the back on a different thread!
@@travelpro23 do you disagree that people should learn to be intentional with their finances?
@Brett Burton, congratulations to you. You have done a great job. Very inspiring indeed. Wish you many more accomplishments in the future.
Love the snowball method! Nice effort Stacey.
Nobody commented how Stacey got 3 extra credit cards since the beginning of the pandemic?
She probably lost her job during the pandemic.
So? I got 6. You get the reward sign up bonus and pay it off in 12 months before the interest hits
In 2019, lost my professional job, had $50000 in debt from student loans, car loans, & credit cards. A year ago, got debt free. Today, at least $100000 in retirement accounts.
I have to wonder if these record figures are adjusted to inflation. Of course as money is constantly losing value, everything is always at record level in unadjusted dollar amounts.
The right analysis would be to compare the level of debt over time as a percentage of income, and as a percentage of net income.
This is the generation that thinks "UA-cam" is a career, no pension plan, no benefits, no vacation and no future but they all want to be famous on UA-cam. You get what you put out, it is just that simple.
Good interview- graphics (charts, animations etc) would add a lot to the video.
That sounds like Snowball debt from the Dave Ramsey’s baby steps. 2:41
Maybe because Rent is too high
Yet the border is wide open with people coming and making housing situation worse
Squarely a mid-lennial here at 35 and very proud to say I have no debts of any kind!
That'll change when I get married and buy a house but for now I'll enjoy the feeling. 😅
Congrats on being debt free! The good news is... getting married shouldn't put you in debt. Quite the opposite.
When my partner and I got married, our combined incomes and shared expenses put us in a much better financial situation.
As long as you "do the math" before adding a new home and children into the equation, you'll be fine. Best of luck!
Love the term 'mid-lennial'. People in their 30s often try to live like their parents or the stars in the sitcoms and therefore spend beyond their means trying to convince others and themselves that they are not losers. Financial balance is a long game.
Having a mortgage shouldn't count as debt in most cases because it actually increases your net worth. Or should anyways unless you buy in a bust town.
Make it your aim to always be debt-free. I'm a 41-year-old millennial and bought my first house at age 35 with $252,000 cash that I had saved since my first job in high school. I married before I turned 37. I carry no debt and feel the freedom of not being tethered to a lender or having to pay unnecessary interest. Buy a fuel-efficient vehicle and you're on your way to a good financial future. We grew up on government assistance for half my childhood, so I learned the value of a penny.
"Live your best life! Have incredible relationships, just don't get state divorce laws involved. They will dictate your finances in the likely event your marriage becomes non-functional! Be careful out there! I wanna keep ya outta my office!"- Jonathan Noble Esquire. Pennsylvania divorce attorney who has practiced in fields of divorce and family law for 20 years.
Is crazy how people dont have self control. I am 37 and my husband 39 we just paid off our mortgage now on September 2023 is just the most amazing relief. Now we just want to focus on investing and saving for retirement. We don't have the newest house in the block or the most modern home, we have all what we need. People called us crazy for been working so much and skipping wants for over 3 years now. I have a couple of friends that are our age and they have over half of million in debt including mortgage, cars, patios extensions and vacations. I look at them and I pray for them because a bad season can hurt them really bad to them and their family.
1. Bad with Money. 2. Worthless college degrees, about 75% of degrees!!
Not me! I have $14 in debt I don’t shop online unless necessary
I think the problem is that we, as a generation, are not educated about debt and the consequences of taking on debt. This is not helped by the fact that we are being sold debt as a solution to our problems and that we live in a 'I want it now' society. We need to educate ourselves because we can't rely on anyone else to tell us because either it's not in their interest to tell us or they don't know themselves.
Thank goodness
Not to mention the lack of home ownership (and ability to) makes us fall victim to rising rents that you have no choice but to keep paying to live somewhere
Student loan payments begin this summer. That will be the final nail in the coffin. All these fools that spent money carelessly since the pandemic and racked up historic amounts of debt will be in a world of hurt. Luckily, for those of us who took advantage, paid off debt, and saved we will have opportunities to acquire more reasonable priced assets like a (first) house.
It is not luck, there is something wrong in the system so that the generation with more university degrees lives with deprivations. the 2008 crisis and the crisis caused by the pandemic and inflation have affected our economy in a devastating way. go back to the 70's, 80's and 90's people with an average job were able to buy a house. That world no longer exists. If you were lucky enough to acquire a house, congratulations. You are an exception, not the rule keep that in mind
@@albertoulloa22 i mean If you try to get a house in the most sought after places on earth you probably gonna have to be ready to pay a high price. Older generations did not Do that
I’ll believe them paying when I see it… you know they’re going to be defaulting and the government will have to bail out the dead beats….
We live in an age of bailouts and zero accountability, that’s why we’re seeing what we’re seeing.
I paid and sacrificed bc I didn’t have any chance of help…
@@albertoulloa22 The something that went wrong is that people mistook the degrees for being valuable. Differentiation in the labor pool was and continues to be valuable. When everyone has a degree they stop being a differentiator.
Also the homeownership rate in the US oscillates between the mid 50s and the low 60s. People with average jobs have never been able to buy houses as the default circumstance.
@@Emiltecknar not a strong argument in the least. U sound like a NiMBY advocate. They tend 2 say that double talk
Because they think they deserve more than they actually deserve. I lived with roommates until age 27 and drove a beater til age 27. My 21 year old niece drives a Mercedes’ and lives alone and is broke.
Suave Shampoo is like $2-4 dollars!
2 years ago when everyone was buying up $500K houses they said millennials had highest credit scores with most secure financials.
Doesn’t it seem pretty normal that people in their 30s are buying houses and so mortgage debt is significantly increasing at this age while gen x has already bought homes and cars and boomers debt is decreasing because they’re paying off their homes? I feel like these large numbers don’t mean anything if they aren’t disaggregated.
My friends in their 30ies can't afford to buy a home. Decent homes are 6 figures now where I live. And some of them being single doesn't help much with taking on loans.
When has there ever been a house less than $100k?? Maybe our grandparents could get a house for less than "6 figures"
I think they're talking about credit card debt only, if we talk about overall debt than yea what you said would make sense
Hailey - if that’s really your picture you are stinking adorable…….👍
@lfymedia5498 well, my credit card debt which almost meets her average, just under 6k, is from a combination of the pandemic, moving to an area where we can afford to start a family, and getting married 😅 not too bad considering
It's crazy how uninsightful this piece of journalism was considering the title
Imagine what will happen to our economy when these indebted generations reach their 40s and 50s, so economically most active and productive age. With easy money and speculations, we’ve just sacrificed our future generation for the wealth of very few who don’t even care about us. Once this shifting of economical burden to future generation happens, it keeps going from one generation to the next one in vicious circle. The worst thing is, those few people with concentrated wealth have now even more political power.
It's a vicious cycle.
Jeff Bridges stared and produced in a movie about tight money decisions families are forced to make. Watch it. It's like 30 years old, and still relevant
American Heart? Blown Away?
No title? Who is this? I'd have to Google.
Being single is the modern unaffordable luxury.
Debt was fine when rates were low but now with fed funds at 5% you don't want it at all.
Shampoo price hit me....crazy price.
Same. 4:49 "2 shampoos, a body wash, and a deodorant. $40. Basic stuff."
No millennials were born in the 2000s FYI. The general cut off for Millennials is typically around 1993-1996. Meaning that folks born in the late 90’s early 2000s are the oldest members of Gen Z
1982-1994ish. Not sure where you found your information.
@@Truth-of-the-matter pew research center defines the cutoff as 1996, I used the 3 year range to account for other sources. But there are also people who consider themselves on the cusp of any generation and they typically are near the very beginning or very end. This was mostly in response to him saying the early 2000s for millennials which is just not true
It's an arbitrary measurement for sociologists... It really doesn't matter, but you have it backwards. Gen Z is born after 2000
As a millennial I saw all my friends choose to party and drink and spend money frivolously on clothes and cars and vacations and every other stupid decision you can make in life meanwhile I was consistently working 12 hour days day after day week after week year after year I now own 8 cars, cash, my home... cash and ZERO debt meanwhile everyone around me can barely get by because of a lifetime of stupid choices and absolutely no impulse control or willingness to sacrifice anything And then you read the comments here and see nothing but endless excuses because nobody wants to ever take accountability for their poor choices. Maybe one day all these people will stop blaming everyone else and take accountability for their life no matter what the situation is.
Great achievement Daniel 🎉🎉
I saw something similar while I was at uni. One of the guys living in our shared dorm blew his student loan on partying and I thought it was the stupidest thing he probably did in his life. I hung onto my four figure savings like glue and defended it fiercely when I got my first place because I knew this wasn't a game. I wasn't playing House, this was real now, and it was up to me to pay the bills and take care of myself.
Why the heck do you need eight cars??
A revolt is necessary but we are so distracted and divided.
Advertisers, lenders, and manufacturers all want us to believe we have to own the latest and greatest. Just because something is not shiny and new does not mean it needs to be replaced. Growing up under parents born during the great depression taught me a lot about the value of a dollar. Consumer debt only makes someone else rich. Compounded interest works two ways: pay it and remain saddled to payments and a life of work, or earn it and save for your own future.
Thanks Lord for your peace.
Is $6000 really considered A HUGE amount of debt for one person?
$6000 on just credit cards is a huge amount of debt. That’s the problem. People are financially illiterate. Because it’s never just the credit cards. It’s $6,000 in credit card debt. Then $30,000 in student loans. Then $40,000 on a new car.
Just give it a few months….😂
Add in 20% interest credit cards and brand new truck over MSRP to carry all the purchases
wrong. 6k on zero percent interest credit cards is a smart move, depending on annual salary and if you can afford to have more than triple of your debt in savings ( you can pay them usually within 24 or 18 months) - plus CC gives you points which can be used to travel / stay in hotels or get cash back sometimes upto 5% back.
However, if you have a designer handbag or some bulljive LV or hermes purse bought on your CC for 6k - yea that's plain dumb and stupid haha. buying groceries or paying insurance or gas payments or paying at restaurants using CC is always smart@@privacyplease1556
You are right that people are dumb when they buy a 75k car on salary of 100k. its plain dumb
When she said “I could go spend money if I wanted to.. but I have debt” like no, u can’t go spend money. SMH it’s basic math, you’re in the red, negative,. -_-
We are just loading up on debt -- and are waiting for the economy to crash, then we'll file bankruptcy and drop all of that big debt load. That's what I am doing, and gonna be scott-free soon.
I filed bankruptcy 2 yrs ago after a failed business and was one of my low points in life plus a divorce at the same time. Today Im free snd have saved up alot of money and of course no debt and never plan on it again. I’m more financially literate today and focus on earning and keeping wealth and live a minimalist life. I’m not worried about not having to make a big purchase until my Bk falls of my credit report on 10yrs.
lol
@@Wong-Jack-Man This something Americans take for granted, your bankruptcy system is very, very, very lenient to the debtor compared to most nations, even if you are poor. In my country, your debt will only be forgiven after 10 years of filing, and many poor people lack the funds to pay the court to conduct the procedure to begin with. Your nation is flawed, like all others but it does have clear and powerful strengths.
Millenials weren't born in the early 2000s, that was Gen Z. The cut-off age for Millennial generation birth year is 1995/6. How does this reporter do an entire video about a generation and not even have the most basic information on them.. Ridiculous.
Me 27 graduated College 3 years ago, and have a degree I can't use in my valley I have to move to LA wich before the 2nd great depression I was ready but now It's extremely hard to do anything. Am in a loosing battle trying to get my foot in the door.
If you suck at finances, just don’t apply for ANY loans or credit cards 🙄
The reason why the new generation people are racking up debt is because a new trend call by now pay later
I personally enjoy the thought that since the climate will be drastically destabilized in the next 30 years that we should enjoy it now before everything collapses
People need to learn how to budget money.
That certainly helps, but isn't everything.
@@SevenEllen Its most of it. People are not willing to budget because they don't want to compromise on their lifestyle. A budget lets you know what course of actions you can take or needs to take, such as getting a second job or getting a roommate in the case of needing more money or how a person needs to not eat out so much and instead cook at home.
Wow it's almost like using fake money backed by nothing has consequences in the long run
Average 6k or more in credit card debt...tell the banks stop giving out credit...
the best thing is pay with cash, dont get married or have children.
avoid loans, credit cards and live within your means and never try to impress random people.
I joined the army after high school, did my 6 year contract, got my Gi-bill, so no debt from school, saved everything for 6 year’s and after I got out for another 5, meaning I lived below my means like the lady, invested where I could, saved where I could, looked for deals, applied for everything that could save me money, mind you I did all this while going through a divorce, living in my car for 3 years ( I had a goal and I was determined ) i also got custody of my kids, 2 of them disabled and still managed to saved enough for my new home, completely debt free aside my mortgage, have enough in investment for my later year’s, we travel, we enjoy life however I still don’t spend or throw money away lol that old habit of living frugally has remained and I’m teaching my kids to be smart with their finances, showing them how the system works and how to take advantage of the small opportunities you get. Oh I forgot to mentioned I’m a minority lol ex-infantrymen so the odds were not exactly on my side.
Dan C-section you are an inspiration to your generation. I’m tired of hearing and reading how milineals are headed in so much debt. There are ways around it such as what you did. Thank you for posting.
This is facts 🔥 Money Management is King 👑
Can I ask you what motivated to write this comment? Like you want some acknowledgement from random people or is it a narcissistic tendency to show yourself off and teach others? Didn't mean to offend. It is just very strange to write you life story below 6 min video that wasn't about you.
@@Aristaifly this made me giggle lol. Thank you for giving me a reason to smile this afternoon
@@OurLadyLaLa you can breath and enjoy sun this should be enough to make you smile. Any insights on why people confess their lives on internet? I genuinely want to know.
Because wages haven't risen in congruency with inflation.
Why did she mention stimulus checks like there were more than two for the two year lockdown 😂
It's harder to be given bankruptcy. Live within your means.
Something is not right with Stacey's story. Federal aids were going through continuously until 2022 for families with children, she wouldn't need to pay rent for a very long time, so she should be saving more money, especially when she said she was already putting money away into savings.
Being single with two kids? No father contributing? Two households needed is biggest part of her problem. $40 for personal products like shampoo? For a teen? Of course she can’t afford to go out!
This videos have interesting context but they aren’t really videos, just audio. I wish they had more visualizations to display the information
Go into the trades.
Drive a truck.
Run a forklift.
Eat well, sleep well, stay hydrated...
Spend your money there, you'll be healthier and living in your means.