Twenty-somethings’ mounting debt is taking its toll, as 60 percent of the generation who grew up amid economic growth and graduated into a hard-hitting recession say they feel stressed about their outstanding debt, according to a survey by The PNC Financial Services Group, Inc. (NYSE: PNC).
The unique study compares responses among Generation Y and reveals that both low- and high-interest-rate debt increases with age, while the portion of income saved decreases in the late 20s.
These findings are part of the first-ever PNC Financial Independence Survey, which sought insights into the financial mindset of 20-somethings who make up nearly a third of the U.S. population and represent one of the largest generations in history.
“Twenty-somethings are challenged with a balancing act between saving for the future and paying down their debt,” said Shannon Johnson, director, consumer checking and rewards, PNC. “Though budgeting can seem overwhelming, Millennials have the luxury of time to develop a strategy and more resources than any other generation to better manage their money and achieve their financial goals.”
Findings: Walking the Tightrope of Savings and Debt
Overwhelmed by debt:
- Debt Burden Increases with Age: On average, their total debt is $45,000, ranging from $12,000 for ages 20-21 to $78,000 for 28-29 year olds holding debt.
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