The average debt and types of credit attributed to it, vary among different age groups. Here is how they compare:
Average Debt of People under 35
Those under 35 have an average debt of $67,400. Student loans make up the most significant portion of that, followed by credit cards. While experts classify student loans as “good debt” due to low interest rates and tax advantages, credit cards are a completely different story because of their high interest rates.
When taking a student loan, experts advise you to think about your future profession and income. They suggest taking the maximum amount of what you can make in the first year after graduating.
Average Debt of People ages 36 to 44
This group has an average debt of $133,100. This is a time when most people start families and move into their permanent homes, so it’s not surprising that mortgages take up the biggest portion of the owed amount. Credit cards and auto loans also take a significant part, while student debt is slightly lower.
Average Debt of People ages 45 to 54
Ages 45-54 have an average debt of $134,600. Portions of this amount are divided like in the previous age group, where mortgages take up the biggest part, and there are even fewer student loans.
Average Debt of People ages 55 to 64
This group has an average debt of $108,300. Most student loans are paid off, and people slowly start saving for retirement.
Average Debt of People ages 65 to 74
Moving into the retirement age, this group owes $66,000 on average. Most loans are paid off, and when retirement arrives, people are usually spending and borrowing less. Mortgages, credit cards, and auto loans still make up the biggest portion of the owed amount.
Average Debt of People over 75
Last but not least, people over 75 owe the least, $34,500 on average. The majority of the group are enjoying retirement, and live on a fixed income. However, some are forced to work due to high medical costs and lack of savings.