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Carrying the Debt Burden
Why debt is one of the biggest challenges for Boomers
Regardless of age, accumulating debt is a way of life for many Americans, in particular Boomers. Even our federal government carries a heavy debt load.
We learn at a fairly young age about buying on credit. We continue to pay off student debt decades after completing college or graduate school. In order to buy a house, we obtain a loan (otherwise known as a mortgage) and pay interest on the principal for many years. Additional debt may accumulate through multiple credit cards, automobile loans and home equity lines of credit.
Boomers are in an especially precarious position when it comes to debt. According to Experian, Boomers carry average total non-mortgage debt of $25,812. This unsettling number includes credit cards, store cards, personal loans and other non-mortgage accounts. The average mortgage debt for Boomers is $191,650. The average credit card balance carried by Boomers is $6,747. Boomers typically hold more credit cards than any other generation.
In August 2018, The New York Times reported on a study that showed Boomer bankruptcies were three times higher than in 1991, with bankruptcies for Boomers far exceeding all other filers. A more recent Times article (April 18, 2021) indicated that the pandemic has not made things any easier for Boomers. A new survey…
