Financial advisors may have an opportunity with millennials, the majority of whom are in debt with many thinking they’ll never be able to buy a home as a result, according to a recent report.
Seventy-two percent of millennials carry some form of non-mortgage debt, real estate firm Clever says it found in a survey of 1,000 millennials conducted on June 16. And the average millennial owes $117,000, according to the report, which calls millennials “America’s poorest generation.”
That’s because aside from the debt they already have, many millennials are only taking on more, Clever says.
For example, much of that debt is likely high-rate: 67% of millennials say they have credit card debt, with an average balance of $5,349, according to the survey.
In addition, 48% of millennials say they have student debt, with the average respondent having a balance of $126,993, Clever says it found.
Moreover, 63% of millennials think it will take them one to five years to pay off what they owe and 9% think it will take over a decade, according to the survey. And 6% don’t think they’ll ever pay off their debt, Clever says it found.
Not surprisingly, these prospects make 41% of millennials feel pessimistic about their finances — and those known as “geriatric millennials,” having been born between 1981 and 1985, are 25% more likely to feel very pessimistic about their financial situation, according to the survey.
The debt affects other aspects of millennials’ lives: 27% say they can’t afford gasoline, 30% of millennial renters don’t think they’ll be able to ever afford to buy a home and 25% say they can’t afford children, Clever says it found.
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