Many consumers have made significant efforts to reduce debt in the past few years, but at the same time, a large number of younger Americans have been racking up significant balances on several different kinds of accounts.
The average person in the 20s now carries some $45,000 in outstanding debts in student loans, credit card debt, auto loans and mortgages, though they tend to understandably pick up more as they age, according to a new survey from the PNC Financial Services Group. Those who were 20 or 21 had just $12,000 in outstanding balances, and while one-fifth had credit card debt, most of that was comprised of education loans. Only 9 percent and 3 percent had auto loans or mortgage debt, respectively.
But by the time consumers were 28 or 29, they had an average of $78,000 in debt, the report said. More than half still had education debt, while 48 percent had credit cards, 38 percent had car loans, and 29 percent had mortgages.
Experts believe that student loan debt will only become a larger problem for young adults in the near future as tuitions rise nationwide and the importance of having a college degree when applying for jobs increases.