Millennials Have Accumulated Historic Debt of $3.8 Trillion

People born between 1981 and 1996, commonly referred to as millennials, have accumulated record-high debt of more than $3.8 trillion at the end of 2022, up a whopping 27% from 2019.

During the COVID-19 pandemic, household debt was flat as government policies helped people delay having to pay off debt, allowing them to save more money. However, since then, household debt has soared, particularly among millennials. 

People in their 30s make up the biggest part of the millennial group, and they have created new records by racking up the most debt by thirtysomethings over any three-year period since the subprime financial crisis in 2008. 

Indeed, this group is now responsible for the most credit card delinquency rates, or bad payments over 90 days old, of any other economically active age group. The average millennial’s credit card payment now stands at $6,750, up about 26% since before the pandemic.

A combination of robust consumer spending, the highest inflation readings in four decades and much higher credit card rates have combined to push credit card balances to new record highs.

Rising debt is unwelcome news for everyone. For millennials, this could mean a widening wealth gap between them and older generations. Thirtysomethings would have fewer opportunities to save money and invest for the future. Many millennials launched their careers during or around the global financial crisis of 2008, hampering their ability to earn from early on.