hey guys what’s up I’m Ain and welcome back to the channel the total Debt for all Americans comes in at 17.3 trillion dollar and our Debt levels are only increasing increasing in each and every category and specifically one of the most damaging
types of Debt Credit card Debt has increased by 133% since the same time 1 year ago what’s really interesting is that we have a culture that is very accepting of Debt carrying Debt of one type or another is
seen as normal in our culture but in that same breath 41% of Americans Define financial success as living completely Debt-free so it’s kind of interesting to see that such a large percentage of people say that financial success is living completely free of
Debt of all types but then living in a time where Debt is very normalized more than that 47% of Americans say that money and Debt specifically has a negative impact on their mental health including anxiety stress worrisome thoughts loss of sleep
and depression according to the Federal Reserve 23% of American adults live a completely Debt-free lifestyle that means no mortgage no auto Loans no student Loans no Credit card Debt no Debt of any
type so overwhelmingly most Americans are not living a completely Debt-free lifestyle most Americans are carrying Debt of one type or another when it comes to Debt it is important to distinguish between different types of Debt make
no mistake about it if your Debt burden is too large no matter matter what the Debt type it’s probably going to cause a lot of stress and anxiety and a whole swirl of negative emotions but there is a distinction to be made between say a mortgage and say
Credit card Debt so let’s look at how much each person is carrying of each Debt type broken down by generation if you were to break things down by generation the youngest working generation gen Z has a total Mortgage Debt of
roughly $235,000 Auto Debt of about $20,000 Credit card Debt of about $3 $3,000 and personal Loan Debt of nearly $9,000 the oldest members of gen Z as of 2024 are 27 years old so for those members who have already
bought a home I think that’s an amazing accomplishment unfortunately the members of this generation are also racking up other Debt types as well honestly one of the best moves you can make is to start out your life with as little Debt as possible building
financial success and Building Wealth is exponentially easier if you don’t have Debt working against you and pulling you back looking at Millennials typical Mortgage Debt is about $300,000 Auto Debt about $24,000 Credit card
Debt about $6,500 and personal Loan Debt is nearly $177,000 for Gen X Mortgage Debt sits around $280,000 Auto Debt around $27,000 Credit card Debt around $9,000 and personal
Debt around $22,000 Millennials and Gen X are sort of in that messy middle of Life a time of life where it feels like everything is coming at you fast and hard and it all comes with a price tag it really is the middle years of life that are most expensive this may be a time where
you have extra family related expenses maybe that’s related to Children maybe it’s related to furry children maybe it’s related to helping care for aging parents and all of this comes while trying to balance everyday life’s wants and needs and this could be at a time where
you’re early in your career or still in the middle phases of your career so your Income is still ramping up and still trying to catch up to your expenses and all of this can stretch your Income to its breaking point and this is why so many people turn to
Debt for Baby Boomers Mortgage Debt is around $190,000 Auto Debt around $22,000 Credit card Debt $6,600 and personal Loan Debt of just under $23,000 as of 2024 the youngest members
of the baby boomer generation are 60 years old so that means the idea of retirement is at least in the Forefront of their mind even if they haven’t yet retired the average age for retirement in the US is around 63 years old it tends to be a little bit older for men and comes in a little bit
younger for women and finally the silent generation Mortgage Debt of around $143,000 Auto Debt around $116,000 Credit card Debt around $3,400 and personal Loan Debt of around $115,000 it’s
probably not surprising to see that the oldest generation has the least amount of Debt in a lot of these categories they’ve had more time to get their none;">Finances in order they’ve had more time to pay down their mortgage they’ve had more time to accumulate wealth which helps to keep Debt at lower levels I want to go back to the stat at the beginning of this CashNews.co that 41% of Americans Define
financial success as living completely Debt free yet still so many of us carry Debt in one form or another I think the goal of living Debt-free is a wonderful goal because I think it can be incredibly freeing but just as so many people are saying
the definition of financial success is living a Debt-free lifestyle almost just as many people are willing to take on non-essential Debt 38% of people say they’re willing to go into Debt for simply a fund purchase 27% would be willing to take
on Debt for travel 14% would be willing to take on Debt for dining out and 133% would be willing to take on Debt to attend a live entertainment event and Beyond these simply hypothetical situations 36% of people say they expect to take on
Debt to fund a travel plans this year and I think these kind of stats signal that for some there’s too much of a willingness to take on Debt to fund today I think this eagerness and this willingness to take on Debt to fund today is
detrimental to Financial Health but it can also be detrimental to Mental Health Mr Arthur Brooks Harvard professor and researcher on happiness says that we’re kind of wired to think about money incorrectly he says the two biggest errors when it comes to money are that the consumption of stuff
will bring you happiness and that borrowing is somehow okay but time and time again his research has uncovered that Debt tends to tank individual happiness levels when it comes to Credit card Debt and auto Loan
Debt and student Loan Debt all of these Debt types reduce overall happiness Mortgage Debt is the only kind of Debt that doesn’t lower happiness unless it’s too big at the end of the day
you can really only do five things with your money one you can buy stuff two you can buy experiences three you can buy time four you can give it away or five you can save it each choice that you make with your money will fall into one of these five categories and Brooks adds that only four of these
choices tend to bring us happiness and those are to buy experiences to buy time give it away or save it and the IR of all ironies is that most of the time our desire is to Simply buy stuff but that’s the only choice that doesn’t lead to an overall increase in long-term happiness when
you buy something that’s new you get that immediate hit of happiness that immediate newness but eventually that newness wears off that happiness tends to wear off no matter what the item is but if you were to buy an experience especially shared experiences with friends and loved ones the
memories you create last a lifetime or in instead you use your money to buy back your time maybe you hire someone to cut your lawn or clean your home and then you use that time to go do something you truly enjoy that will make you happier when you use your money to help a cause or people you care
about that comes back to you in the form of Happiness when you set aside a little bit of money today for Savings and Investments you’re investing in future happiness you’re giving your future self more options a little bit of sacrifice today leads to
exponentially more happiness down the road it can can be incredibly easy to take on Debt especially when we live in a culture that promotes a lifestyle that leverages Debt but I think once you become aware of how Debt can negatively impact your
mental health not just your Financial Health it’s easier to sidestep the Debt traps it’s easier to be much more cautious with taking on Debt at the end of the day it comes down to one thing living within your means and not overextending yourself
realistically looking at what your Income is and keeping your expenses in line with that goes a long way to a app your life it’s not about a life of deprivation it’s about just living within your means how do you think Debt impacts your overall mental
health leave your thoughts in a comment down below I post new CashNews.cos every single week if you got anything at all out of this one please give it a like if you’re new here please consider subscribing or if you know of someone who might get something out of this type of content please
consider sharing I’ll see you soon bye says that we’re kind of wired probably should look at the camera my bad G ridiculous
CashNews, your go-to portal for financial news and insights.
Gen Z has only $8,710 in personal loan debt??? where is the student loans?
Love your content, new subscriber here! About debt, I don't like it and I'm glad to be down with a mortgage only. We've decided to keep investing as our mortgage rate is under 3% and the balance is around $100k left so we can pay it off quickly from our investments if we really wanted to.
Debt is a necessity in life but can also be a huge financial advantage. But not all debt is equal. I have a mortgage, home equity loan account, and free interest extended payoff loans on various purchases – Kubota tractor, wife's sewing machine, truck. The mortgage and HEL are low interest. The cash I saved with these loans is invested at a much higher return than the debt rate, so I make money off the loans. Plus the mortgage and HEL loan interest is tax deductible..a win win for me. I would never pay credit card interest, take out a personal loan, borrow money to buy a vehicle, or get an education……all bad debt!
Debt absolutely tanks my mental health. Especially debt incurred from unexpected things or emergencies. Car debt or mortgage didn’t bother me much (but I was always living below my means and cautious). I’ve been in situations several times in my life where I couldn’t pay off my entire credit card debt (due to piggy-backing, insurmountable emergency expenses) and I had such a hard time with it. I’m now finally debt free, and even though we’ve just had yet another round of big emergency expenditures one on top of another, we have been able to get past them with only depleting our emergency savings, not having to go into debt. That has been huge for my mental health.
Those “willing to take on debt for (non-essentials)” stats are terrifying to me.
Being debt free allows you to have peace of mind, and more freedom.
I have a credit card with a Three hundred dollar credit limit I budget and I live very frugal no mortgage no car loan living debt free is a wonderful feeling ❤❤❤❤
No debt in the last five years. It buys you peace of mind and happiness
Debt is like drinking heavily at a party knowing you are having a great time in the moment and tomorrow is going to be bad.
Being debt free is a good goal, but don’t lose the forest through the trees. Low interest debt for needs (home and transportation) is ok. Debt for wants (vacations, weddings, new sports cars, boats, campers, etc) is bad.
Paying on a 3% loan with tomorrow’s money while averaging 10-12% in the market is a better plan.
No debt whatsoever and I thank god 3 times a day for it.
Keep debt to a minimum. Cut expenses. Develop healthy habits like consistently saving money at regular intervals for investments to help you build wealth. If you work on this, your financial potential will grow exponentially. There are numerous opportunities to make money on the financial market. With the assistance of my financial advisor Dianne Sarah Olson, I was able to earn my first million dollars through passive investment in a variety of assets and right now my friend is on his way to a million too with her help. Goodluck!
Taking on debt for entertainment and leisure is a terrible decision. But aggressively paying off low interest good debt like a mortgage, if you're relatively young, may also not be the best approach. Balance is key. If you amass a huge nest egg while sacrificing for years, will you be healthy/active enough to actually enjoy it in your later years? Experiences often lead to most impact on long term happiness as Erin indicates…so if it takes you 20 years instead of 10 to pay off your low interest mortgage for ex, but you are able to spend thr difference to afford meaningful experiences and otherwise live within your means, I see no issues with that. Just avoid consumer debt and pay cash whenever possible
I'm favoured, $27K every week! I can now give back to the locals in my community and also support God's work and the church. God bless America.
I think it's important to note that average car debt has increased significantly. It's hard to get ahead financially if hundreds of dollars are going out the door each month for a depreciating asset. Our philosophy is to hang on to vehicles as long as possible and save up for a new car. My parents think it's not possible to pay cash for a car, but you just have to think about it in advance, not when your car is on its way out
Zero debt. Also, I've never done anything wrong.
A college degree is worthless. $200k to get a job that pays $50k. 😊
What surprised me is that gen z mortgage debt is less than millennial and x mortgage debt, has home prices gone down? what can explain the gen z lower mortgage debt?
All the baby boomers I know are debt free. I wonder if it depends on where they live on getting those high debt numbers.
I LOVE THE BLOOPERS….LOL
I’m 65 and newly retired with only a small mortgage balance (under 50,000). I just want to say how REFRESHING it is to see a young person include Baby Boomers and the Silent Generation in their financial videos! Well done!
61 just paid my mortgage off on a high value home.Just my credit card which im paying off next month, with the saved mortgage payment.Then im on to investments, have 4 cars, camper ,boat and other hobbies
I had a lot of debt when I graduated college and first started working. I bit the bullet and started paying it off and life has become
much less stressful as a result.
We're on schedule to retire 100% debt free with exception of a small amount left on our 2.3% mortgage. The property has already
appreciated over $500,000 so I'm perfectly fine taking as much time as possible to pay off the remainder of that mortgage.
You notice net debt just keeps moving up until boomer. And that being average is sad when 3 of 4 of those I have 0 debt as a millennial and even the auto loan is under the average, and house paid off
Great video, thanks. I am currently debt free and that has always been a goal/priority. Some of the things you say about buying things for happiness are not universally true, they are generalities that vary from person to person. For example, I always hear (especially from my spouse) “I prefer experiences over things”. Guess what? I do not. Certainly, impulse purchases have a short shelf life in terms of generating happiness. But when I buy something I really care about it, is often old (antique) and quirky, relatively one of a kind. That doesn’t mean it has a high, or any, market value. But I can look at a beautifully made antique I purchased twenty or thirty years later, and still be struck by how beautiful it is and how its presence in my home just gives off good vibes. Comparatively, I find experiences (vacations, concerts) to be a lesser value for my money because they feel very brief and fleeting. I know I am not in the mainstream, but I also don’t believe I am the only person with this attitude. All that said, for me the best thing money can buy is freedom with my time.
Just read a story about Colorado woman $20k+ in debt, getting further into debt by flying to Paris for Olympics. Story explained how $300 / month toward her debt would take 4.5 years to pay off, and she has to get serious about this now, as 34% of her current take home pay is already earmarked for servicing debt. They were worried she will never be able to retire, and I thought that's the least of her problems. With that lack of self control, she's more likely to go bankrupt long before she needs to worry about retirement.
You don’t mention the cost of raising children. (at least I didn’t see it listed). Crazy expensive these days.