Does age matter when it comes to debt?

| Jan 8, 2021 | Debtors |

Owing money is not necessarily an indication of poor financial decisions. Indeed, most people in Maryland would not be able to purchase a vehicle home without borrowing money to do so. Reasonable amounts of debt can quickly spiral out of control, though, and people of different ages borrow for different reasons to roughly 33% of this debt, with the other two-thirds tied up in non-housing debts. While consumers of all ages carry mortgage debt, those between the ages of 40 and 55 — Generation X — have the most, with the average Gen X homeowner owing $238,344. Generation Z — 18 to 23 year olds — have the smallest amount of mortgage debt with an average of just $142,000.

Credit card debt is fairly universal across all generations, too. Again, consumers in Gen Xers have the most credit card debt — an average of $8,215. Baby boomers between the ages of 56 and 74 have the second highest average of $6,949.

Even when borrowing reasonable amounts, things like interest rates, job losses and financial emergencies can make it impossible for Maryland consumers to pay off their debt. When things reach this point, it is usually a good idea to consider the benefits of bankruptcy. Not only does bankruptcy provide financial relief in the long term, it also provides short term benefits regarding things like foreclosure and repossession.