Story at a glance
- The findings of a new survey from the site Real Estate Witch shows that almost three quarters of millennials have more than $100,000 in debt.
- Most of that debt is non-mortgage debt.
- But while millennials have a large amount of debt, many are optimistic that they can pay it off over the next five years.
Recessions, inflation and an out-of-reach housing market — millennials are no strangers to financial anxiety.
A recently published report by the site Real Estate Witch shows that most members of the Net Generation are also saddled with huge amounts of debt, adding to their money woes.
The study found that most millennials have over $100,000 worth of debt with most of it not connected to a mortgage.
Over 70 percent of millennials have some form of non-mortgage debt with the average millennial owing $117,000, according to the report.
Almost half of millennials, or 48 percent, reported having some form of student loans with the average person owing $126,993 but the most common type of debt was credit card debt, with 67 percent of millennials having some amount of debt on a credit card.
While most millennials have accrued a large amount of debt, the bulk of millennials, 63 percent, believe that they can pay it off over the next one to five years.
Meanwhile, a smaller number, almost one out of 10, estimate that it will take them more than 10 years to pay off their debts while one in 16 believe that they will never be able to pay off what they owe.
To make matters worse, nearly one in three millennials, or 29 percent, admit to not paying off their credit card in full every month.
According to the report, among millennials with credit card debt the average amount they owe is $5,349.
The report also found that millennials on average spend 47 percent of their gross monthly income on housing each month, about 1.5 times more than the recommended 30 percent.
Only 10 percent of survey respondents said they have never had debt, which means that 90 percent of millennials have had some sort of non-mortgage debt in their lives.
Out of the 28 percent of millennials that are debt free, one in three has never had debt while one in four have paid off their debt within the last year, the survey found.