To determine how much debt you should have at this stage of your life, we compiled the national average debt of Americans in each age group, from millennials to retirees. In this article, we’re focusing on the average debt for middle-aged adults and career professionals between the ages of 35 and 54.
Average Debt Middle-Age Adults: (Age 35 – 44)
During this period of life, the financial strain of spending too much begins to catch up with most Americans. The increased expense of childcare, bills, and mortgage result in adults of this age range carrying-over credit card balances, overdrawing their checking accounts, and tapping into their retirement accounts. According to a study commissioned by ValuePenguin.com, “this is the only age group where the majority (56%) did not pay off their credit card balances at the end of each month.” That’s probably why they call it a midlife crisis.
Per the U.S. Census Bureau, the average debt for this age group is $21,350. If you are around that debt amount, you can manage your debt by limiting your spending, creating and following a budget, and possibly considering debt consolidation to regain your financial health.
Average Debt Career Professionals: (Age 45 – 54)
At this age, most professional adults have advanced in their careers and have started saving towards their goal for retirement. Studies also show this age range controls the largest amount of America’s disposable income as credit card debt peaks for those between 45 and 54 years old to an average monthly balance of $9,096. Again, per ValuePenguin.com, “those who are 45 and older spend significantly more on their credit cards… likely due to the budgets they are operating with.” As adults continue to pay off their mortgage and car note, splurges like vacations and home improvements become affordable expenses for the gainfully employed.
Many are also in the process of emptying their nest as their children graduate high school and head off to college. However, having a child leave home does not necessarily mean they are financially independent. Parents often buy their kid a car as a graduation present or end up financing their college education. With the U.S. Census Bureau estimating the median debt for this age group at around $23,055, any additional expenses can increase debt and delay retirement if not budgeted correctly.
At this stage, student loans also become more manageable if not paid-off completely. This is especially true for those in this age range when you consider how much more affordable their student loans were. According to a Federal Reserve Report on the Economic Well-Being of U.S. Households, “the average American under 35 holds 182 percent more college loans than students that graduated in 1995.” Inflation just isn’t fair.
Get Expert Debt Relief
If you are still struggling with mounting debt at this stage in your life, reach out to Progressive Debt Relief. We can help you establish a debt-free life by settling your loans and other unsecured debt and providing you with the tools necessary to avoid future financial distress. Contact us today for a free consultation call 877-590-1847 or free consultation find out more about our services or to schedule a complimentary consultation.
