Yahoo Finance Top Metros for Debt by Generation
With age may come more wisdom, but debt doesn’t necessarily move up or down in a straight line as you get older. As data from a LendingTree study reveals, debt by generation zigs and zags.
In analyzing the credit reports of LendingTree users across the 100 largest U.S. metros, the results show the following median non-mortgage debt balances:
Gen X (ages 44-59): $33,859
Millennials (ages 28-43): $30,558
Baby boomers (ages 60-78): $18,779
Gen Z (ages 18-27): $16,562
These results could indicate that debt accumulation can occur as you age, considering that Gen Z may not have had much time to rack up debt, whereas Gen X has had a few decades of being adults to do so. However, at a certain point, paying down debt may become more manageable, as baby boomers have much lower balances than both Gen X and millennials, but not quite back toward the start where Gen Z is at.
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For example, only 47.7% of boomers carry auto loan debt, with a median balance of $19,526 across the 100 largest metros. In comparison, 61.2% of Gen X has auto loans, with a median balance of $23,260, and 59.8% of millennials have auto loan debt, at a median of $20,826.
For some, that could reflect buying more expensive cars; but, as you approach retirement, that could change. You also might reduce debt by consolidating from a two-car household to a one-car household in retirement. Or you might pay down auto loans and other debt, such as if you have more room in your budget if you no longer have to financially support your children.
Credit card debt is another area where Gen Xers are racking up the highest balances.
Although the LendingTree analysis does not separate credit card balances of those who pay their statements in full every month vs. those who keep revolving balances, Gen X still has the highest average credit card balance — $6,255 — across the 100 largest metros. In comparison, boomers have median credit card debt of $4,862, followed by millennials at $4,372 and Gen Z at $2,076.
Here too, this could reflect higher spending totals that end up getting paid off each statement, but another study by Debt.com seems to support that Gen X is less cautious about racking up credit card balances. That study found Gen X is more likely than other generations to accept and ignore credit card debt.
In addition to debt levels varying by generation, they also look very different depending on where you live. Yet cost of living does not necessarily correlate with non-mortgage debt levels, as many relatively low-cost cities have high median debt balances.
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Gen Z: Top Five Metros by Debt Level
For Gen Z, the top five metros with the highest median non-mortgage debt balances include:
McAllen, Texas: $27,781
El Paso, Texas: $22,476
Cape Coral, Florida: $21,208
Harrisburg, Pennsylvania: $21,178
Syracuse, New York: $21,166
The metro area with the lowest average non-mortgage debt for Gen Z is Madison, Wisconsin, with a median of $9,147. Yet even relatively high-cost places such as Portland, Oregon, and San Francisco rank in the top 10 for lowest median debt balances for Gen Z.
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Millennials: Top Five Metros by Debt Level
For millennials, the top five metros with the highest median non-mortgage debt balances include:
El Paso, Texas: $42,982
McAllen, Texas: $40,293
San Antonio, Texas: $38,744
Augusta, Georgia: $36,730
Cape Coral, Florida: $36,684
The metro area with the lowest average non-mortgage debt for millennials is Spokane, Washington, with a median of $22,036. For millennials too, relatively high-cost places such as New York, San Jose and San Francisco rank in the top 10 for lowest median debt balances.
Gen X: Top Five Metros by Debt Level
For Gen X, the top five metros with the highest median non-mortgage debt balances include:
McAllen, Texas: $46,166
San Antonio, Texas: $43,893
El Paso, Texas: $43,596
Jacksonville, Florida: $41,442
Dallas: $40,921
The metro area with the lowest average non-mortgage debt for Gen X is Springfield, Massachusetts, with a median of $23,845. Similar to other generations, relatively high-cost places such as Boston, New York and San Francisco rank in the top 10 for lowest median debt balances for Gen X.
Baby Boomers: Top Five Metros by Debt Level
For baby boomers, the top five metros with the highest median non-mortgage debt balances include:
McAllen, Texas: $33,020
Augusta, Georgia: $29,754
San Antonio, Texas: $28,524
Austin, Texas: $26,686
Dallas: $25,965
The metro area with the lowest average non-mortgage debt for baby boomers is Boise, Idaho, with a median of $12,712. Following the same trend as other generations, relatively high-cost places such as San Jose, California; San Francisco; and Portland, Oregon, rank in the top 10 for lowest median debt balances for boomers.
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This article originally appeared on GOBankingRates.com: Top Metros for Debt by Generation
