It’s well known that millennials in the U.S. have to live under a cloud of debt. A new study by LendingTree has shown just how bad the situation is for young Americans today with the median debt balance for millennials living in the country’s 50 largest cities $23,064. The research analyzed anonymized credit report data on the LendingTree platform (which has over 9 million active accounts) from people born between 1981 and 1996.
Excluding mortgages, millennials in San Antonio, Texas, have the highest debt burden in the country with a median of $27,122. Pittsburgh comes second with $26,403 while Austin is third-worst with $26,164. Three cities in California had the lowest median debt burden – San Jose, Sacramento, and Los Angeles. All of them have median debt levels below $20,000 among millennials.
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Student loans account for the highest share of America’s millennial debt, comprising 40 percent of their total credit and loan balances. The proportion varies considerably between cities and it is at its highest in Philadelphia at 49.1 percent and its lowest in San Jose at 24.1 percent. Auto loan debt is close behind and it accounts for 40 percent of those debt balances. Differing significantly by city (depending of course on public transport and the extent to which a car is necessary), it accounts for 43 percent of millennials’ average total debt in Riverside, California and just 22 percent in New York City.
You will find more infographics at Statista
STUDENT DEBT
How U.S. Education Became A “Debt Sentence”
The Northeast of the country is the worst affected and according to a CNBC report, 75 percent of New Hampshire’s graduates carry outstanding debt, the worst in the country, with the average amount owed $36,367. Utah has the lowest rate of debt and graduates there owe an average of $20,000.
The following infographic shows how third-level education in the U.S. has gone from being a dream to being a “debt sentence” for millions of American students. Federal Reserve data shows that the number of student loans stood at $480 billion in 2006 and by 2018, the debt mountain had risen to $1.53 trillion. The reasons for the debt are numerous and complex but are likely to include increases in tuition costs, less students finishing their courses and the lingering impact of the financial crisis.
You will find more infographics at Statista
U.S. Funding University – Statistics & Facts
