Younger Americans Going Deeper into Debt

January 17, 2005 | | |
Gen Xers yearn to carve a new direction for society. Unfortunately, the direction appears to be straight into debt. Americans between the ages of 25 and 34 now boast the second-highest rate of bankruptcy, just behind the 35-44 group. The average credit card debt for this group increased by 55 percent between 1992 and 2001, with the average young adult household now spending approximately 24 percent of its income on debt payments. Really want to worry? Take a peek at these findings from the Generation Broke report put out by social activist group Demos, using the Federal Reserve Board's survey of consumer finances.
Tamara Draut, director of Demos' economic opportunity program and the lead author of Generation Broke, says the finding that surprised and concerned her was the fact that most 25- to 34-year-olds spend roughly a quarter of every dollar paying down debt.