Young Americans Are Facing The Highest Debt Levels In More Than Ten Years, Adding Up To $1 Trillion Among 19 To 29-year-olds At The End Of 2018.
That debt is the highest in the youngest adult group since 2007, according to the New York Federal Reserve Consumer Debt Panel.
The majority of that debt for these Millennials is student loans.
Fortune Magazine reported on the debt and explained how it is impacting spending habits of this demographic based on a University of Michigan survey released last week.
Younger adults— those under age 35—have reduced their spending compared with previous generations possibly because of weakened job prospects, delayed marriage, and educational debt.
Policy makers have recognized that lower spending limits economic growth. As a result, a number of policies to boost younger adults spending such as forgiving student debt have entered the political arena, according to Richard Curtin, director of the University of Michigan consumer survey.
Student loans make up the majority of the $1,005,000,000,000 owed by this cohort, followed by mortgage debt. New mortgages among young adults today remain quite a bit below levels incurred in the early 2000s. – READ MORE