Millennials Worry About Debt - Other News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Millennials Worry About Debt

Millennials Worry About Debt

Add to Favorites:
Millennials Worry About Debt
Tags: , ...
September
12

Millennials might invoke visions of fun and youthful enthusiasm, but there is another side to that coin – two out of five millennials are worried about how much debt they are carrying and are actively looking for ways to manage it, according to a new survey by FICO.

The study found that 37% of millennials falling in the 25-34 age range are worried about how much they owe and 33% are looking to get some help to manage it. Just how much debt? For millennials student loan debt is the biggest burden they carry after residential mortgages, with 32% carrying $20,000 or more in student loans.

While student loan debt is high, cars also help millennials rack up debt, with 45% report owing at least 7,000. Why? They report seeing car’s as being an essential part of life. With 91% saying its the optimal way to get around on a day to day basis, and 19% letting researchers know they would charge a car to their credit card.

With all of this delinquency is a reality for some. “Our research shows that delinquency risk is highest among 25-34 year-olds, who are still developing their financial literacy skills and learning to manage their loans and lifestyle costs. The silver lining for lenders is that Millennials aged 24-35 are keenly aware they may need some help. For financial institutions, there’s a great opportunity to minimize the risk of delinquency by alerting customers when payments are due,”Tim Van Tassel, vice president of FICO’s credit lifecycle business line.

Alerts for all the generations

No matter how young or old people are email alerts are their top choice for being kept in the loop when it comes to being notified that they are late for a payment. Millennials are on board with this too, with 65% want to be contacted via email when their student loans are delinquent by 90 days.

But when it comes to their mortgages or home equity lines 35% would rather be notified via an app when they are less than 90 days past due, and an actual phone call when they are more than 90 days delinquent.
This survey was conducted online by FICO in October and November of 2015. They interviewed 1,000 US consumers, who were above the age of 17.

Add to Favorites:

Related News:

Talking About Money Equals Happiness
Talking About Money Equals Happiness

Posted: September 23, 2016

Love and money are the two biggies in life and relationships, and now, according to a new study by TD Bank, couples who talk about money have a higher happiness factor than those that don't. Continue reading
Financial Optimism is Up, But So is Income Stress
Financial Optimism is Up, But So is Income Stress

Posted: September 29, 2016

Are you feeling more hopeful, yet are still a bit worried about whether or not you're making enough money? Continue reading
Consumers Worry about Credit Card Debt and are Open to Alternatives
Consumers Worry about Credit Card Debt and are Open to Alternatives

Posted: January 03, 2017

If you find yourself worried about credit card debt, and wishing for alternatives to credit cards you are not alone. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Match Mile For Mile: We’ll match all the Miles you’ve earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee. See WebBank/Fingerhut Credit Account Terms.
For Bad Credit