Technology X, maybe finest recognized for being neglected, stands out from the pack in a single unlucky means: debt.
By most measurements, Gen X is deeper in debt than different era. Members of Gen X — born roughly from 1965 to 1980 — have the best common debt stemming from student loans, credit cards and extra.
Why does Gen X owe a lot cash? It’s largely attributable to their present circumstances fairly than specific private finance selections.
“To put it simply, many of these individuals are in an expensive phase of life,” Rod Griffin, senior director of shopper schooling and advocacy at credit score reporting company Experian, tells Cash by way of e-mail. “They may have mortgages and car payments on top of the ongoing costs of raising a family. They may be shouldering education expenses for themselves and/or their children.”
This is how Gen X matches up by way of debt ranges with Gen Z (born 1997 and after) millennials (1981 to 1996), child boomers (1946 to 1964) and the silent era (1928 to 1945), based mostly totally on 2023 data from Experian.
General debt by era
Although members of Gen X could also be swimming in debt, they’re additionally of their highest-earning years proper now — which actually is useful you probably have a ton of debt to repay.
One other good factor: In all probability, Gen X’s debt will retreat as they grow old and their children (hopefully) transfer out and turn out to be financially unbiased.
“Generally, as consumers get into later stages of life, we see debt levels decrease and average credit scores increase. We expect to see a similar trend with Gen X as they age and begin paying off their mortgage, vehicles, etc.,” Griffin says.
![Average debt by generation chart](https://img.money.com/2024/06/News-Generation-Most-Debt-Chart.jpg?quality=60)
Pupil mortgage debt
Younger persons are extra more likely to have pupil mortgage balances: 24.3% of millennials and 20.2% of Gen Z are in pupil debt, in comparison with 14.9% of Gen X, 6.1% of boomers and only one.4% of the silent era.
However amongst those that have pupil mortgage debt, Gen X owes probably the most, on common.
(Notice: The info beneath comes from Experian and is predicated on 2023 numbers. It’s unclear how debt ranges could have been affected by the Biden administration’s many student loan forgiveness initiatives.)
![Average student loan debt by generation chart](https://img.money.com/2024/06/News-Generation-Most-Debt-Chart-Student.jpg?quality=60)
At the least Gen X overwhelmingly believes that going to varsity was definitely worth the expense. In keeping with a latest Debt.com survey, solely 6% of Gen X says they remorse taking up an excessive amount of pupil mortgage debt, in comparison with 11% of millennials and 20% of Gen Z.
Mortgage mortgage debt
The common mortgage stability for every era is sensible when you consider what’s more likely to be taking place within the lives of various teams proper now.
Members of Gen Z are simply getting into the workforce and are dealing with a really costly housing market. Fundamental starter properties could also be all they will afford, so their mortgage funds are correspondingly small.
In the meantime, millennials and Gen X owners may very well be on their second or third home at this level of their lives. Dad and mom from these generations in all probability nonetheless have kids residing at dwelling, in order that they want more room in comparison with younger individuals who don’t have children or older of us whose kids are out on their very own.
The older generations have had extra time to repay their mortgages or have even already downsized. In both circumstance, their mortgage balances could be smaller than the everyday home-owner of their 30s or 40s.
![Average mortgage debt by generation chart](https://img.money.com/2024/06/News-Generation-Most-Debt-Chart-Mortgage.jpg?quality=60)
Whereas millennials and Gen X face the largest mortgage payments, they’re additionally fortunate sufficient to have the bottom mortgage rates.
In keeping with a Freddie Mac report, the common mortgage rate of interest at origination for millennial and Gen X owners is 4.0%, in comparison with 4.1% for boomers, 4.3% for the silent era and 4.9% for Gen Z. The variations are largely a matter of timing: Members of Gen Z have been unlucky to achieve their prime homebuying ages over the previous few years, when mortgage charges have spiked.
Against this, “millennials entered the market when the rates were low, with 37% of all millennial borrowers’ purchases occurring in 2020 and 2021,” the Freddie Mac report explains. “While 25% of all Gen Xers’ purchases were in 2020 and 2021, Gen Xers who already were homeowners took advantage of low rates and refinanced during the low-rate period.”
![Average monthly mortgage payment by generation chart](https://img.money.com/2024/06/News-Generation-Most-Debt-Chart-Mortgage-Pay.jpg?quality=60)
Bank card debt
Credit card debt ranges comply with an analogous sample to different debt classes, with Gen X main the pack.
![Average credit card debt by generation chart](https://img.money.com/2024/06/News-Generation-Most-Debt-Chart-Credit.jpg?quality=60)
Whereas Gen X has the best common debt, millennials are most certainly to want they didn’t spend a lot on their playing cards. Simply over one-quarter of millennials say they remorse piling up their bank card debt, versus 19% of Gen X and Gen Z, per Debt.com.
Auto mortgage debt
It’s largely the identical story for auto loan debt. As soon as once more, these Gen Xers have the best debt ranges, seemingly as a result of they want larger autos (assume: SUVs) and extra of them (for teenage drivers).
![Average auto loan debt by generation chart](https://img.money.com/2024/06/News-Generation-Most-Debt-Chart-Auto.jpg?quality=60)
Extra from Cash:
Here’s How Much Debt the Average American Has
8 Best Mortgage Refinance Companies of 2024
What Is Debt Relief and How Does It Work?