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Experian Breaks Down Debt and Credit by Generation

22 February 2012 7 Comments

Information services group Experian, known most famously for their credit reports, recently released an infographic that breaks down debt and credit between the four generations currently at the helm of global spending. These generations include those 66 and older, dubbed the Greatest Generation, those 47-65 classified as Baby Boomers, and Generations X and Y, ages 30-46 and 19-29 respectively. The debt and credit infographic was no doubt created to highlight the difference a few decades can make when it comes to financial habits, but it also serves as a way for each generation to examine themselves within their specific age group, and gives them a way to potentially learn from each another.

*Highlights below the graphic.

Experian Debt and Credit Infographic

Here are the highlights of the Experian livecreditsmart.com infographic:

  • Those 66 and older carry the most bank card debt – 43% more than the national average.
  • Mortgages remain the major source of debt burden: Across the board, the majority of debt for any given generation is attributed to a mortgage. This holds true even for the 19-29 age bracket.
  • Student loan debt is a growing concern: Generations X and Y have unprecedented amounts of student loans to pay off compared to older generations. Gen Xers owe 14% more in student loans than Americans in general, while the average member of Generation Y owes a whopping 420% more in student loans than the average American.
  • VantageScores are staggered: The average American’s VantageScore is 751. But when graphed by generation, average scores are the highest for older folks at 829 and lowest for young folks at 672, while the generations in between descend accordingly. With that said, it’s not until the Baby Boomer generation where the average credit score is above the national average and not below it.
  • Average American debt does NOT reflect any specific generation: Despite the ‘average’ American being roughly $78,000 in debt, this number is nowhere to be found when debt is broken up by generation. Those 66 and older tend to owe around $40,000, while the youngest possessors of debt tend to owe a little less. Meanwhile, Baby Boomers and Gen Xers have debt averages that hover around $105,000.

The conclusion is an easy one to make: the consistency of debt as well as its toll on our lives varies from generation to generation. But for specific generations looking for answers when it comes to figuring out their individual debt concerns and credit conundrums, such figures can only offer a stark reality broken down into age brackets.

7 Comments »

  • fxgeorges said:

    I find it odd that they don't just allow people to know EXACTLY how their credit scores are determined. This guessing game is really killing Americans.

  • @abegsd said:

    Must spend wisely.

  • uk financial blog said:

    I think the X generation need adequate knowledge on finance educate and how to be debt free, when they get admission into higher institutions of learn. You can learn on how to be debt free, from this uk finance resources, if you click here, you can read more on finance and debt free.

  • more info said:

    Many people who apply for loans owed ​​to banks, but it seems they do not think about the risk of doing so. In my opinion, they should know the worst risks of doing this.

  • FL Divorce said:

    Amb l'arribada del paquet d'austeritat i redundant en més i més persones estan exposades a retirar molt abans que ells són realment llestos. Ells tenen els diners i l'energia i l'entusiasme per començar un negoci vostè mateix. La cosa és, no menys que els que no tenen la disposició per executar una experiència nova empresa.
    FL Divorce

  • Prop Makers said:

    Saving the money is very important to practice since we were a kid. It makes us learn the new behavior, to save the money until we adult.
    Prop Makers