Adults born between 1981 and 1996 make up the millennial age group. As this group of people faces the challenges of adulthood in Michigan, recent research shows they’re also taking on considerable debt. Rising home prices, inflation and student loan payments make it hard for millennials to manage their finances.
The data behind millennials’ relationship with debt
A recent study from SmartAsset looked at data from around the U.S. to create its state-by-state report. SmartAsset researched multiple factors, including average credit card debt, unemployment, and housing-related data among millennials from 2022. A notable finding from this company’s research is that the average millennial in the U.S. has at least $3,700 in credit card debt. SmartAsset also found that credit card debt among millennials is increasing, and is up from 5% since 2021.
According to SmartAsset, southern states make up 60% of the top ten highest credit card debt totals for millennials. Florida is the state with the most severe problem involving millennials and credit problems, with the average millennial owing $4,888 in credit card debt. This state’s often costly rent also takes up a considerable portion of the average millennial’s income.
How Michigan compares to other states
Michigan took spot #29, making it near the middle of millennial credit card debt rankings compared to other states. SmartAsset’s data shows the average millennial in Michigan has a credit score of 685 and overall credit card debt of $3,975. The unemployment rate for millennials in Michigan is 5.7%, with a rent-to-income ratio of 13.06%.
Credit card debt isn’t a problem unique to millennials. However, research shows that lingering debt is a major concern for the average millennial who worries about credit card debt seven times a day.