Baby Boomers and Gen Xers Wound Down Their Nonmortgage Debt Over the Past 2 Years, While Gen Zers and Millennials Increased Their Burdens
Debt knows no generational bounds, yet the strain of financial obligations resonates differently among each age group. When it comes to debt burdens, though, Gen Xers stand out. In fact, Gen Xers have the highest average nonmortgage and mortgage debt of any generation — and their nonmortgage debt is growing.
Using more than 150,000 anonymized credit reports on the LendingTree platform in the first quarter of 2023 and 87,000 anonymized credit reports in March 2021, we analyzed debt by generation. Here’s what we found.
Key findings
- Gen Xers carry the most nonmortgage debt, on average, of any generation. The average nonmortgage debt among Gen Xers ($45,781) is more than double that of Gen Zers ($21,665). Auto debt accounts for 36.8% of Gen Xers’ average nonmortgage debt — the highest among the debt types for that generation.
- Baby boomers and Gen Xers saw their nonmortgage debt drop between 2021 and 2023, while Gen Zers and millennials saw increases. Between March 2021 and the first quarter of 2023, nonmortgage debt for baby boomers and Gen Xers dipped by 26.4% and 2.8%, respectively. Meanwhile, nonmortgage debt for Gen Zers and millennials rose by 99.3% and 20.9%, respectively.
- If you add mortgage debt to the mix, Gen Xers still carry the most debt, on average, of any generation. The average debt balance among Gen Xers is $167,493. The next closest — millennials — is more than $43,000 lower. The average mortgage debt among Gen Xers ($121,712) is nearly as much as the total average debt carried by millennials and well more than the entire debt carried by Gen Zers.
- Baby boomers were the only generation to reduce their overall debts between 2021 and 2023 after being the only fully adult generation to increase their debt during the COVID-19 pandemic. Boomers knocked $21,870 (or 15.5%) off their liabilities sheet for a final debt burden of $119,017. In this period, Gen Zers, millennials and Gen Xers increased their overall debts by 179.1%, 88.2% and 25.8%, respectively.
By generation, Gen Xers have the most nonmortgage debt
With increased age comes increased (financial) responsibility — particularly for Gen Xers (ages 43 to 58). This generation has the highest nonmortgage debt balance, owing $45,781 on average. Comparatively, the generation with the least debt — Gen Zers (ages 18 to 26) — owes less than half as much, with an average balance of $21,665.
Following Gen Xers, millennials (ages 27 to 42) have the second-highest nonmortgage balance, at $41,557.
Average nonmortgage debt balances by generation
| Debt type | Gen Zers | Millennials | Gen Xers | Baby boomers |
|---|---|---|---|---|
| Auto balance | $9,894 | $14,836 | $16,836 | $10,611 |
| Credit card balance | $2,789 | $6,408 | $8,917 | $7,564 |
| Student loan balance | $7,067 | $15,014 | $12,680 | $5,083 |
| Personal loan balance | $1,915 | $5,299 | $7,348 | $5,050 |
| Total balance | $21,665 | $41,557 | $45,781 | $28,308 |
Source: LendingTree analysis of more than 150,000 anonymized credit reports on the LendingTree platform in the first quarter of 2023.
LendingTree chief credit analyst Matt Schulz believes that Gen Xers’ financial obligations likely play a role in their high debt burden.
What’s responsible for Gen Xers’ high debt balances? Auto debt accounts for the highest percentage of this age group’s nonmortgage debt, making up 36.8% of their total debts.
Distribution of average nonmortgage debt by generation
| Debt type | Gen Zers | Millennials | Gen Xers | Baby boomers |
|---|---|---|---|---|
| Auto balance | 45.7% | 35.7% | 36.8% | 37.5% |
| Credit card balance | 12.9% | 15.4% | 19.5% | 26.7% |
| Student loan balance | 32.6% | 36.1% | 27.7% | 18.0% |
| Personal loan balance | 8.8% | 12.8% | 16.1% | 17.8% |
Source: LendingTree analysis of more than 150,000 anonymized credit reports on the LendingTree platform in the first quarter of 2023. Note: Totals may not equal 100% due to rounding.
Still, though, they’re not the age group with the biggest share of auto debt — auto loans account for 45.7% of Gen Zers’ total debt balances. Meanwhile, student loans make up a higher percentage of millennials’ debt balances than any other generation, at 36.1%.
Older consumers paid off nonmortgage debt between 2021 and 2023, while younger consumers acquired more
Despite carrying the most debt, Gen Xers saw their nonmortgage debt drop between 2021 and 2023. In this period, their nonmortgage debt fell by $1,336 on average — a decrease of 2.8%. Baby boomers (ages 59 to 77) were the only other generation to see a drop, with nonmortgage debt falling by an average of $10,156 (26.4%).
Of note, baby boomers paid off more credit card debt than any other debt type. Their credit card balances fell by $4,146 — a 35.4% decrease.
Younger consumers, meanwhile, took on more debt in this period. Gen Zers increased their nonmortgage debt by 99.3% between 2021 and 2023, adding an average of $10,797. This age group saw particularly significant balance spikes for personal loans (rising $1,292, or 207.4%) and credit card balances (rising $1,771, or 174.0%).
Change in average nonmortgage debt between 2021 and 2023
| Debt type | Gen Zers | Millennials | Gen Xers | Baby boomers |
|---|---|---|---|---|
| Auto balance | 59.0% | 14.1% | -1.7% | -26.6% |
| Credit card balance | 174.0% | 26.2% | -7.2% | -35.4% |
| Student loan balance | 135.1% | 11.6% | -13.0% | -25.1% |
| Personal loan balance | 207.4% | 86.0% | 26.3% | -8.2% |
| Total balance | 99.3% | 20.9% | -2.8% | -26.4% |
Source: LendingTree analysis of more than 150,000 anonymized credit reports on the LendingTree platform in the first quarter of 2023 and 87,000 anonymized credit reports in March 2021.
Among millennials, nonmortgage debt rose by 20.9%. Notably, their personal loan balances rose by $2,450 in this period — an increase of 86.0%.
Including mortgage debt, Gen Xers still have the biggest balances
Throwing in mortgage debt, Gen Xers still hold their No. 1 position — even if Schulz says this isn’t necessarily a bad thing. This age group owes an average of $167,493, about $43,000 more than millennials — the age group with the next highest balances.
In fact, by mortgage debt alone, Gen Xers have a significantly higher balance than any other age group. Consumers of this age owe an average of $121,712 on their mortgages. That’s almost as much as the $124,295 for millennials’ total average debt and significantly more than the $34,133 Gen Zers owe overall.
Average debt balances by generation
| Debt type | Gen Zers | Millennials | Gen Xers | Baby boomers |
|---|---|---|---|---|
| Mortgage balance | $12,468 | $82,738 | $121,712 | $90,709 |
| Auto balance | $9,894 | $14,836 | $16,836 | $10,611 |
| Credit card balance | $2,789 | $6,408 | $8,917 | $7,564 |
| Student loan balance | $7,067 | $15,014 | $12,680 | $5,083 |
| Personal loan balance | $1,915 | $5,299 | $7,348 | $5,050 |
| Total balance | $34,133 | $124,295 | $167,493 | $119,017 |
Source: LendingTree analysis of more than 150,000 anonymized credit reports on the LendingTree platform in the first quarter of 2023 and 87,000 anonymized credit reports in March 2021.
Another reason for their high mortgage debt? Gen Xers are the most likely age group to owe on a mortgage, with 47.3% of consumers this age carrying mortgage debt as of the first quarter of 2023. Baby boomers are the next most likely, at 45.0%.
Percentage of consumers with debt by generation
| Debt type | Gen Zers | Millennials | Gen Xers | Baby boomers |
|---|---|---|---|---|
| Mortgage balance | 6.1% | 30.9% | 47.3% | 45.0% |
| Auto balance | 45.4% | 55.7% | 56.4% | 43.3% |
| Credit card balance | 76.8% | 85.8% | 90.4% | 91.3% |
| Student loan balance | 34.6% | 36.5% | 24.1% | 9.9% |
| Personal loan balance | 31.7% | 40.3% | 39.3% | 29.1% |
Source: LendingTree analysis of more than 150,000 anonymized credit reports on the LendingTree platform in the first quarter of 2023.
Baby boomers were the only generation to pay down their overall debts
By generation, baby boomers were the only age group to reduce their debt between 2021 and 2023. This may be because they were the only age group to increase their debt between 2020 and 2021, according to the previous LendingTree study on debt by generation — meaning they had more room to reduce those debts this time around.
Between 201 and 2023, boomers paid off $21,870 (or 15.5%) of their total debts, leaving them with an average balance of $119,017.
Change in average debt between 2021 and 2023 ($)
| Debt type | Gen Zers | Millennials | Gen Xers | Baby boomers |
|---|---|---|---|---|
| Mortgage balance | $11,107 | $51,082 | $35,731 | -$11,714 |
| Auto balance | $3,673 | $1,838 | -$287 | -$3,855 |
| Credit card balance | $1,771 | $1,331 | -$687 | -$4,146 |
| Student loan balance | $4,061 | $1,564 | -$1,891 | -$1,705 |
| Personal loan balance | $1,292 | $2,450 | $1,529 | -$450 |
| Total balance | $21,904 | $58,266 | $34,394 | -$21,870 |
Source: LendingTree analysis of more than 150,000 anonymized credit reports on the LendingTree platform in the first quarter of 2023 and 87,000 anonymized credit reports in March 2021.
In this period, Gen Zers saw their overall debts increase the most, rising 179.1%. That’s followed by millennials (88.2%) and Gen Xers (25.8%).
Change in average debt between 2021 and 2023 (%)
| Debt type | Gen Zers | Millennials | Gen Xers | Baby boomers |
|---|---|---|---|---|
| Mortgage balance | 816.1% | 161.4% | 41.6% | -11.4% |
| Auto balance | 59.0% | 14.1% | -1.7% | -26.6% |
| Credit card balance | 174.0% | 26.2% | -7.2% | -35.4% |
| Student loan balance | 135.1% | 11.6% | -13.0% | -25.1% |
| Personal loan balance | 207.4% | 86.0% | 26.3% | -8.2% |
| Total balance | 179.1% | 88.2% | 25.8% | -15.5% |
Source: LendingTree analysis of more than 150,000 anonymized credit reports on the LendingTree platform in the first quarter of 2023 and 87,000 anonymized credit reports in March 2021.
For Gen Zers and millennials, increased mortgage balances make up the largest chunk of their growing debts. While many Gen Zers may be becoming homeowners for the first time, it’s worth noting that homeownership may already be a reality for the majority of millennials. According to a LendingTree study on millennial homebuyers, 52.88% of mortgage offers in the largest 50 metros in 2022 went to millennials.
Paying down debt? Here’s what experts recommend
Regardless of your age, debt can seem daunting — particularly now, with interest rates as they are. For those look to pay off some of their debt, Schulz recommends the following:
- Consolidate. Schulz believes that debt consolidation can be a great way to tackle debt. “It can help you reduce the interest that you pay over the life of the balance as well as the time it takes to pay off that balance,” he says. “It can also make those debts easier to manage because it simplifies your payments.”
- Ask for a lower rate. A recent LendingTree survey on interest rate requests found that 76% of people who asked for a lower interest rate on their credit card in the past year got one. The average reduction was about 6 percentage points. And while it seems small, that’s the difference between a 25% APR and a 19% APR.
- Revisit your budget. You can’t make a meaningful plan to attack debt if you don’t know how much money is coming in and going out of your household each month. “If you haven’t looked at your budget in several months, there’s a good chance that a lot of the assumptions you made about costs have been blown out of the water by inflation, meaning that you’re not getting the most accurate picture of your current financial situation,” Schulz says.
Methodology
LendingTree researchers analyzed more than 150,000 anonymized credit reports from the first quarter of 2023 and 87,000 from March 2021 to calculate the average debt balances across five major debt types (personal loans, student loans, credit cards, auto loans and mortgages).
The generations researchers examined include:
- Generation Z (born after 1996; ages 18 to 26 in 2023)
- Millennials (born between 1981 and 1996; ages 27 to 42 in 2023)
- Generation X (born between 1965 and 1980; ages 43 to 58 in 2023)
- Baby boomers (born between 1946 and 1964; ages 59 to 77 in 2023)
Analysts then compared the average balances from the two periods.