Yahoo Finance 10 States Where Millennials Have the Most Debt
For millennials across the country, the amount of debt they carry can be crushing. According to Scholaroo, millennials have an average credit card debt of $5,898 and an average monthly credit card payment of $166. The amount of credit card debt they carry is 52% higher compared with their Gen Z counterparts.
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Millennials also carry higher amounts of student loan debt compared to Gen Z. They have, on average, $31,297 in student loans, paying around $44 per month. They carry the highest amount of mortgage debt and the second highest amount of auto loan debt compared to other generations. Many millennials are paying thousands of dollars each month towards their debt, but the amount can vary significantly depending on where you live.
Here are the 10 states where millennials have the most debt.
Virginia
Average debt: $56,126
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Maryland
Average debt: $56,314
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Oregon
Average debt: $56,512
Alaska
Average debt: $58,071
Massachusetts
Average debt: $60,367
Hawaii
Average debt: $61,945
Colorado
Average debt: $63,053
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California
Average debt: $63,433
Utah
Average debt: $66,725
Washington
Average debt: $71,440
How To Pay Off Debt as a Millennial
If you are carrying large amounts of debt as a millennial, you aren’t alone. Most millennials carry somewhere between $30,000 and $70,000 in debt. It can take years to climb out of a financial hole, but there are ways to expedite your debt-free lifestyle. The good news is that you likely still have some time before retirement to get your finances in order.
Create a budget. Before you even begin to establish a plan for paying off your debt, you need to have a firm idea of how much money you can put towards your debt. You will want to sit down and establish a budget. Write down all of your expenses and income, then discern your necessary from discretionary spending. Focus on your needs and reduce your wants to ensure you have more money to put towards your outstanding loans.
Pay off high-interest credit card debt first. Most financial experts agree that the first step to tackling large amounts of debt is to pay off your high-interest credit cards first. Continue to make your monthly minimum payments on your other loans, but put more towards the card with the highest interest rate until it is paid off. Continue doing this with each debt.
Consider government aid programs. If you carry a significant amount of student loan debt, you may qualify for government assistance that helps reduce or eliminate what you owe. Your state may provide help as well, depending on the career path you choose.
Meet with a financial expert. One of the best ways to get your finances in order is to meet with an advisor. An advisor can help you develop a plan so that you can retire when you want, with the money you need to live comfortably.
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