Stressed millennials could use some advice on managing their growing debt

Millennials rank getting out of debt as a top goal. Banks and credit unions have advice to offer, but they have to be mindful of this generation's skepticism toward the financial services sector. Show some empathy and skip the suggestions about pinching pennies to the point of giving up small pleasures.

Financial institutions casting around for ways to reach Millennials should promote their money management tools and share helpful advice for paying down debt.

Nearly seven in 10 Millennials, or 69%, cite getting out of debt as their biggest financial goal in a survey commissioned by Real Estate Witch, a website that provides consumers with information on home buying.

Despite their intention, however, more Millennials are falling behind. Nine in 10 Millennials are carrying non-mortgage debt in 2023, up from 75% last year, according to the survey of 1,000 people born between 1981 and 1996. Their average debt load was $90,000.

Contributing factors include a growing share of Millennials with auto loans, which jumped to 42.9% this year, up from 28.9% last year, says Matt Brannon, a data writer for Real Estate Witch’s parent, Clever Real Estate. More Millennials also owe money on credit cards – 56.9% this year compared to 47.9% last year. This was the most common form of debt cited overall.


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