Crisis: Debt-Ridden Millennials "Hitting Pause Button On Major Life Events"

Millennials - the generational demographic cohort following Generation X, born between the early 1980s and mid-90s - outnumber Generation X and the Baby boomers.

Millennials have been referred to as “echo boomers” due to an acceleration in birth rates starting in the boom years of the early 1980s via interest rate suppression, which continued into the late 90s before the unraveling of the Dot-com bubble. This generation is now coming of age and will be a majority of the labor force by mid-2020s. Their influence in American society is starting to be realized, although it is leaving a negative mark on the economy as one thing is obvious: Millennials and debt go hand-in-hand.

According to NBC News/GenForward survey, the most common form of debt for 18-to 34-year-old Americans is credit card debt. Approximately, 75 percent of the millennial cohort have financial obligations, and they are ‘pausing major life events’ because they are too broke, the report noted.

A quarter of millennials have racked up over $30,000 in bills, including 11 percent who have over $100,000 in debt. Shockingly, only 22 percent of millennials are debt free.

As a result of all this madness, savings is not hip with the millennials, which has limited their economic mobility and left many unprepared for the next financial disaster.

In a Central Bank boom/bust economy, each generation throughout the past century has experienced some form of deleveraging.

What happens next, well, you guessed it — millennials could be the next generation to feel the wrath of natural selection through a deleveraging period, as it all depends on when the next recession strikes. The survey confirms that millennials have the weakest balance sheet, with credit cards playing an even more significant role than pesky student loans.

In a period of wage stagnation along with nearing the latter stages of the second longest economic expansion in U.S. history, credit card debt is the most significant liability on the millennials’ balance sheet. Meanwhile, as the homeownership rate for millennials has rapidly declined, only 20 percent said they have a mortgage or home loan.

The survey indicates that millennials with college degrees tend to utilize credit more often than those without college degrees. Shockingly, nearly 50 percent of all African-American millennials have student loan debt.

“Millennials with college degrees are more likely to have credit card debt (56 percent) than those without college degrees (40 percent). But they are also more likely to make more money — 56 percent of millennials with college degrees make over $50,000 a year compared with 31 percent of millennials without college degrees. Forty-nine percent of African-American millennials have student loan debt — more than any other racial subgroup.”

When it comes to savings, 30 percent of millennials have less than $1,000 in their personal savings accounts, and only 1 percent have over $100,000 saved. About 24 percent of millennials have no savings at all.

“Sixty-two percent of millennials owe more in debt, overall, than they have in a personal savings account. Only about a quarter (24 percent) have more money in their savings account than they owe in debt.”

Two-thirds of millennials said they would have trouble paying an unexpected expense greater than $1,000. The survey added, “African-America and Latino millennials would have a harder time coming up with the money than other racial subgroups.”

Here is the bombshell: “a majority of millennials have hit pause on major life events because of what they owe,” stated the survey. Nearly 34 percent of all millennials are holding off on buying their first home, and about 31 percent are delaying savings for retirement. The report even said debt has “affected millennials’ family structure.” Fourteen percent of millennials have postponed getting married due to high debt levels, and what should be a national crisis: 16 percent have delayed having children.

Somehow, the survey concludes: “millennials overall remain optimistic about the future.” Perhaps, that is because this generation like all the other generations before, tend to live outside their means through the use of credit and are trapped in the mindless propaganda of a never-ending party.

“Even with a lot of debt relative to savings, millennials overall remain optimistic about the future. A majority (58 percent) are optimistic about things like finding and keeping a good job, paying off student loan debt, and being able to afford the lifestyle they want.”

In short, the heavily indebted millennial could soon experience a period of deleveraging, as their balance sheets are extremely weak with no savings to cushion the fall. The party is nearing an end, and the millennial generation will be holding the bag.

Comments

D503 Leakanthrophy Mon, 04/09/2018 - 18:51 Permalink

I was thinking "retirement homes" and "gulags," but it would be pretty funny watching the elderly try to force people in their prime to continue to slave away for no reward. 

Face it boomers:

You graduated high school for jobs you now require bachelor's degrees and experience for entry level.

Tripled the cost of college.

Opened the markets to slave labor in the third world for competition.

Passed legislation that has houses condemned, sitting empty, while charging rents that return twenty times cost. 

Passed laws that criminalized all your behaviors as a teen. 

Dumbed down the education system so that people in Baltimore etc graduate unable to read.

Erected an insane post-production, service society that produces nothing. 

Manifest a broken home as a rule childhood for your children. 

Watched as credit companies handed out slavery cards to the kids you pushed into college to "follow their dreams."

You'll get what you deserve.

In reply to by Leakanthrophy

mkkby ldd Tue, 04/10/2018 - 01:38 Permalink

This is so stupid.  Young people starting out never had good jobs or lots of money.  That's what starting out means for fuck's sake.

Every week we get these shit bag divide and conquer articles.  Just click bait.  Young people will be fine.  Just like every other generation, some are smart and some are dumb.  The dumb ones will fuck up their lives with drugs/alcohol/debt.  The smart ones will save/marry and have decent lives.  No rocket science here.

In reply to by ldd

Sudden Debt ted41776 Mon, 04/09/2018 - 19:44 Permalink

They have only themselves to blame.

No economic insight and they don't have a clue how to handle money.

 

If you give them all a million, most will be broke after 1 year.

 

Putting the blame on others is always to easy. 

This weekend a guy was telling me he has taken out a loan for every vacation he ever did... 20 vacations later and he's in debt beyond his own imagination. And to service the debt, he also took out loans. 

Well... he'll never be rich, that's a fact.

 

How many live to show people they're richer then they actually are?

Almost half my country is driving luxury cars... ehe... 

And can you blame banks for giving them the money? They do... after they have spend it all.

 

In reply to by ted41776

Majestic12 Sudden Debt Mon, 04/09/2018 - 19:51 Permalink

Nothing Changes....

"My Generation"

People try to put us d-down (Talkin' 'bout my generation)
Just because we get around (Talkin' 'bout my generation)
Things they do look awful c-c-cold (Talkin' 'bout my generation)
I hope I die before I get old (Talkin' 'bout my generation)

This is my generation
This is my generation, baby

Why don't you all f-fade away (Talkin' 'bout my generation)
And don't try to dig what we all s-s-say (Talkin' 'bout my generation)
I'm not trying to cause a big s-s-sensation (Talkin' 'bout my generation)
I'm just talkin' 'bout my g-g-g-generation (Talkin' 'bout my generation)

This is my generation
This is my generation, baby

Why don't you all f-fade away (Talkin' 'bout my generation)
And don't try to d-dig what we all s-s-say (Talkin' 'bout my generation)
I'm not trying to cause a b-big s-s-sensation (Talkin' 'bout my generation)
I'm just talkin' 'bout my g-g-generation (Talkin' 'bout my generation)

This is my generation
This is my generation, baby

People try to put us d-down (Talkin' 'bout my generation)
Just because we g-g-get around (Talkin' 'bout my generation)
Things they do look awful c-c-cold (Talkin' 'bout my generation)
Yeah, I hope I die before I get old (Talkin' 'bout my generation)

This is my generation
This is my generation, baby

In reply to by Sudden Debt

Aliquis121 Sudden Debt Tue, 04/10/2018 - 09:52 Permalink

@Sudden Debt, I think you underestimate the rationality of the early millenials. I doubt that any of my friends (I'm a early millenial) would go into debt because of such an stupid reason you just listed above.

Anyway that has nothing to do with millenial or not, it has to do with common sense and our media fucked brain which is increasingly shrinking our brain activity. Our stupid 6 to 6 jobs or whatever you call them, where you make every fucking day the same stupid shit, mostly bureaucrazy, so in the end you fall into great lethargy.

We don't blame the banks for giving out money, we are blaming banks for their corruption and short-sighted monitoring of the monetary policy, which, as we were able to see at 2008, is payed off by millions of people who didn't have anything to do with it. I guess a lot of millenials are a lot more political than the earlier generations, but in a different way. We also blame the checking devices in our modern system which are there to educate and clarify situation, for example the real estate bubble in 2008. How many greedy and stupid people in high positions had to be involved or simply didnt care about other persons, for a collapse this big?
A working system would check the borrower to say "nope, no car for you". But thats just not how it is and the monetary policy made the same mistake JUST RIGHT AFTER it failed in 2008. So what are the millenials to blame for? I mean, look at the FED, ECB and BOJ. Are those Millenials sitting in there? Or is it now the fault of millenials not to demonstrate? How was ist when the older generation was in charge that now is sitting at the desks of this so called "bad businesses"?

Blame someone else and please use your brain. We don't care about your fucking money, we just want a more trustworthy world because we are tired of dumb accusing each other and dumb moves EVERYWHERE you look, while inequality reaches a critical level because money (and oil) is the only thing that counts in this world. It's nothing more: simple stupidity.

This article is not about direct debts, its about stupid decisions made years ago while we sucked our thumbs and because of that we now have an absolute debt situation which we now all have to cover, no matter if millenial or not, but still, the stupid accusing goes on and on and on, right round. Best example is you: "a fRieNd oF mIne...hE IS nOt a verY smArT DudE...gOT inTo DeBTs beCauSe oF a vACatiOn...wHaT aN idIot. hE's neVEr goNnA bE riCh. fUCk tHose miLleniaLs.".

In reply to by Sudden Debt

Retired Guy D503 Mon, 04/09/2018 - 19:26 Permalink

I'm a boomer. I had no say in all that stuff you accuse. The current insane conditions are a surprise to me. As the story says millennials are the power now. So what you going to do about it dude?  Vote for Bernie? Blame somebody? Who is protesting all the military spending? Just imagine what young people could do with all that loot. Just imagine how much safer the world would be without so much MIC. I protested Vietnam and we got it to end. What have you done besides run up debt?

In reply to by D503

D503 Retired Guy Mon, 04/09/2018 - 19:46 Permalink

I don't have debt. Just like you don't have a retirement fund. 

You claim no responsibility, but you stood by and watched all the same. How's that song go? "If you choose not to decide, you still have made a choice?"

The part you seem to be missing is the idiotic expectation that millenials will pay you for your "investments."

You're holding trash iou's.

Your generation supported Sanders and Clinton. My generation is overwhelmingly Trump and Paul. 

Your generation is helicopter parents and equality of outcome. My generation calls your faggot children SJWs and soyboys. 

You run the television bullshit of trannies and leftist propaganda. We're on 8chan/reddit/imgur toxic as hell discussing the federalist and anti federalist papers. 

You live in a vapid bubble of your own bullshit. All these retards you raised were someone else's fault right? Sure bud.

 

In reply to by Retired Guy

Aliquis121 Moe Hamhead Tue, 04/10/2018 - 10:02 Permalink

Well guess what Moe Hamhead, wouldn't it be nice when the world had time again to actually care about the olds instead of just putting them somewhere once they are not as useable for the market as they were? What a bad world that would be, if the younger generation would take care about the older generation.(/sarcasm)
But I don't expect you to understand this. You are so blindly accusing someone to feel any better with your miserable life in which you don't do any decisions, if you did, you would know there is no logical reason to blindly accuse a whole generation.

I don't know any Millenial that lived at their parents home over 20yo. If so it was to a reason, maybe going to college and cutting the renting cost because the college is too intense to concentrate next to it on a job. And guess what! They all moved out at the exact point they finished college. What? Is this not working with you stereotyped biased brain? I'm sorry for you.

In reply to by Moe Hamhead

MoralsAreEssential D503 Mon, 04/09/2018 - 19:26 Permalink

No, YOU'll get what you "deserve."  Maybe not you personally since you're on this blog indicating you are more aware than other Millennials.  However, the whining and anger at your grandparents and wishing them pain and suffering says more about your inability to understand YOUR situation. Your Blame Game is meaningless to the New Plantation Owners.  Unlike you, I don't blame you for your arrogance or stupidity; I do blame you for the the chip on your shoulder which needs to blame others.  American Millennials have been taught by their Marxist Idols that socialism works and UBI is right around the corner.  It doesn't and it isn't.  The next decade will test everyone alive.  The socialism the Euros and Nordics, UKs and Canadians are so fond of beating Americans with is failing fast in their respective countries.  The cultural make up of the US and all Western countries has been purposely undermined for evils you may not know about.  The acceptance, reliance and obsessive focus on Tech will most likely be all our undoing.  In the best case, some ideas about Open Source Engineering using tech for the welfare not the destruction of human beings may save the world's situation IF the Whitehats win.

In reply to by D503

D503 MoralsAreEssential Mon, 04/09/2018 - 19:59 Permalink

People are going to do what they think is most beneficial to themselves, and people are retarded. 

The fuel issue has at the most another five years of business as usual before even an idiot can't ignore the fact that they're eating ramen and working fifty hours a week for the honor. 

A political response to declining quality of life will certainly precede that reality. 

One need look no further than the sudden change in micc stocks back in 2012 contrasted with the decline of Exxon Mobil to confirm exactly what I say. 

http://www.morningstar.com/stocks/xnys/noc/quote.html

Go ahead, check them all, LMT, GD, EB...

All of them have a completely different trajectory than the previous twenty year lifetime valuations all bending near the end of 2012 when Exxon stopped it's exponential capex growth despite continued decline in barrel eq. production. 

So no, bud. Millennials are going to ride the party down with you. Because you've left no future besides slaughtering each other. 

You think Zerohedge is the cutting edge of information? This is infotainment. You're in the dark.

In reply to by MoralsAreEssential

Eusebius MoralsAreEssential Mon, 04/09/2018 - 20:24 Permalink

Hello sir (also a Millennial here) - happy to field this, first I will summarize your salient points:

1) Blame and complaining is meaningless.

2) Millennials are socio-economically delusional. 

3) Tech and productive capital are the solution, (economic "mana from heaven").

I'll start by addressing points 2) and 3) together because, yes, whilst most Millennials are socio-economically misguided, the fact you think focusing on productive capital is a noteworthy point implies to me you might not have a full grasp of how the financial system works - I might be wrong and you're right on that point in isolation of course, but it's the vibe I pick up. Happy to go all day on how we solve this financial system but I think what will matter most to you is the upshot of how it affects you, and that will be where I think it might be valuable to take your own advice on point 1).

Addressing point 1), yes of course, diffusion of responsibility effectively means blaming anyone at this point is silly. However solutions (as another Boomer above has criticized us for not volunteering - i.e. protesting - urgh...) will have impacts on people and believe me Millennials like me are pushing for those solutions - it's a nasty, well burrowed in parasite this financial system and instead of holding placards we're infiltrating it and building parallel systems to survive undoing it.

Now here's the thing: Those solutions will have very serious impacts on YOUR specific standard of living - pensions, house prices, social support - Boomers will protest it. "I paid into the system", etc. 

You are of course free to complain but it comes down to this: Who is more important to us, Boomers or our own children? If you think that's up for debate you've misunderstood what you were entitled to - you don't get to eat my children's future and if on the other side of it you can't support yourself you'll have the option of a dignified euthanasia, but you don't have a standard of living at my children's expense.

Stealing from me is fine I'll absorb the impact for my children but if you try to steal from them it's only going to work out one way - you won't be able to stop us either, you'll be old and frail in a system you invested in which fell apart and surrounded by people who utterly despise you. 

If you think that's unfair I redirect you to your own advice, it's not persona - you're just collateral whose well-being nobody gives a good God damn about.

Consider that as you blindly laugh at the clueless avocado on toast eaters because the Millennials you should be worrying about are the ones waiting under the very thin ice you're standing on when you inevitably fall through it.

 

In reply to by MoralsAreEssential

platyops Eusebius Tue, 04/10/2018 - 01:50 Permalink

How many Tatoos do you have?

Your children have already been taken to the cleaners and also their children.

We have left you a debt that will not and cannot be paid. I, on the other hand, have a very secure lifestyle that I dare you to try and mess with.

Do you drink Lattes(sp), do you vape and watch your phone all day. Do you color your hair pink and green. You have been had like a bacon sandwich! Get used to it we planned and spent well.

I won't even say thank you for the contributions to my lifestyle that you are already in debt for up to your ears.

In reply to by Eusebius

vaporland D503 Mon, 04/09/2018 - 22:23 Permalink

face it millennial:

we boomers had a blast sucking all the fun out of the world and leaving your generation with the crumbs.

you hate olds and want us to die, tough shit. we're still having fun every day. are you?

the world was our oyster, now it's your ashtray. enjoy!

damn the 80's were awesome! too bad you only have Ready Player One! - and the guy who made that movie: he's a boomer! shut up and give him your money.

whiny millennials trying to trigger boomers. yawn. old age and treachery always defeat youth and skill.

let me know how this works out for you, long-term-wise...

 

PS - voted trump so he could burn down republican and democratic parties. so far, so good!

In reply to by D503

Umh Mon, 04/09/2018 - 18:15 Permalink

Let's be honest, our culture has deprived them of a chance to grow up. Helicopter parents always came to the rescue, class project no problem. I remember being in school and knowing that parents had helped someone, helped a lot. The problem is systemic now just like the participation trophies. Actually it's not so much the participation trophies as the failure to reward real performance.

HRH of Aquitaine 2.0 Umh Mon, 04/09/2018 - 18:18 Permalink

I agree. I am on Ch. 19 (out of 24 plus Epilogue) in "Hope of the Wicked." None of this was accidental. Parents and kids were told lies. The public school system was taken over by the commies a long time ago. Long before I was born, John Dewey didn't just create the Dewey Decimal system. He also created a public school system which was created to keep your child dumb and obedient.

Of course there is a reason the wealthy don't send their precious bundles of joy to public schools. They know the drill. Between the fucking commies and the perverts no child that attends a public school will come out of that school without being warped. It's intentional. If my cynicism prior to reading this book was at level 9, on a scale of 1-to-10, it is now at level +1000. I don't believe anything the government says. Zero.

In reply to by Umh

AlphaSeraph HRH of Aquitaine 2.0 Mon, 04/09/2018 - 18:26 Permalink

Correct. I'm a Millennial, I was not duped. I have 17k left in student loans with about that in assets. I'm on 0 total net wealth. Oh and that 17k is to my parents, interest free, also because they have 0 debt. Boomer gen and Millennial gen together at no debt. I have a degree, a good job. I'm 30 and single. I feel blessed but I've worked a lot to get there. with that being said, I'm in Toronto and housing is so expensive I can't afford to buy a home and start a family. If prices stay where they are here it will take me 6 years to save up ~100k only to have my mortgage + property taxes consume ~65% of my income. I really hope RE crashes 40% here.

Good luck all.

In reply to by HRH of Aquitaine 2.0

HRH of Aquitaine 2.0 AlphaSeraph Mon, 04/09/2018 - 18:28 Permalink

Consider yourself lucky. Oh, and move to a place that is more affordable. My grandfather moved from Arroostoock County, Maine to Kommiefornia where he worked for McDonnell Douglas for 20 years. He retired with a pension and went back to Maine where he lived with an unmarried niece who had a small house in Presque Isle and a camp on Long Lake. It wasn't fancy but that camp was fun. Nothing like listening to the loons (they are a type of aquatic bird) in the evening and eating massive thick steaks cooked over wood from the local Frenchie butcher. (Lots of hate between the Frenchies and the non-Frenchies in that area). They stayed with their people and we stayed with ours.

There are options. Choose your own path. You sound like you have your head on straight and have good parents. Be grateful. You have more than most.

In reply to by AlphaSeraph

DipshitMiddleC… AlphaSeraph Mon, 04/09/2018 - 18:38 Permalink

hey bro im in the same boat as you pretty much but i have no debt at all. i will never be able to afford to buy a home and i make okay money. i really have no interest in participating in the scam known as the american way of life. for most..its just endless credit card debt. 

 

my long term goal (10 years or so) is to leave the US. not sure where i want to go but this is a sinking ship and i dont think Trump can fix it 

In reply to by AlphaSeraph

Vilfredo Pareto DipshitMiddleC… Mon, 04/09/2018 - 18:52 Permalink

Latin america is still pretty wide open.  It may not be what you think, and there is bound to be a destination that suits you from europhile Uruguay and Argentina  to germanically efficient Chile (well, as close as a Latin will get to Germanic efficiency anyway), to traditional Columbia to pure unadulterated Latin chaos.  You know which ones those are.  Panama and Costa Rica I believe are played out in terms of opportunity with too many gringos there anyway, unless you just want to be a hostelier or a jungle tour guide.

 

I don't count shitholes like mexico Honduras Guatemala el Salvador as "Latin" and neither do the south Americans.  They know a shithole when they see it too.  

 

Get a job teaching English while you go to Spanish language classes provided cheap for immigrants.  In a year you will be fluent if you are motivated.  If you have a college degree get the job lined up before you go.  If you dont have a degree then go to one of the lesser developed ones such as Bolivia (which is perfectly safe) on a tourist visa.  Pound the pavement a couple of weeks until you get an English teaching job.  Then go to the immigration office and convert your visa.  It used to be simple.  Proly still is.  They want immigrants still.  Once you speak Spanish perfectly and have a work visa in Bolivia then try to move to a different country if you want.  Or stay there.

 

All Latin countries  are growthy if you have the right skill set,  with less government interference and lower taxes, mainly because taxes are easier to avoid and as a Latin it is your patriotic duty to skip taxes.

 

In reply to by DipshitMiddleC…

Dumpster Elite Vilfredo Pareto Mon, 04/09/2018 - 19:23 Permalink

I've never been to Argentina, but have always wanted to go there. The climate seems to be more to my liking (I HATE jungles and hot ass sweaty weather!) The thing that scares me about ever moving there permanently, is that I have no idea if it is a "stable" country or not? There always seems to be some kind of turmoil going on there, with this leader or that leader being arrested every other week. I like Chile, but not a fan of 7.0+ earthquakes every other year.

In reply to by Vilfredo Pareto

HRH of Aquitaine 2.0 DipshitMiddleC… Mon, 04/09/2018 - 19:38 Permalink

Don't wait! Buy Robert Young Pelton's books. I don't care which one, just buy one. Get a passport. Have $1K. Can't afford a ticket? Get work on a boat or a yacht. Can afford a ticket? Good. Just buy one and go where you like the food and the weather. Show up, work, make sure you like it. Learn the language, get married, have kids, stay.

If I were younger I would go to Russia. They are mostly white, Christian, homosexuality is discouraged not encouraged and it's cold. I like cold(er) climates. Beaches and sand are overrated. Too many bugs. I hate bugs.

In reply to by DipshitMiddleC…