Experian, one of the three main credit agencies, has released their Fourth Annual State of Credit.
In this post-recession study, each of the four generations are compared based on the following statistics:
- Average credit card debt
- Average number of bank cards
- Average balance on those bank cards
- Average revolving utilization rate (the overall percentage of credit limits used)
- Average VantageScore (a credit score developed by Experian, Equifax and TransUnion)
Here are how the four generations stack up:
Greatest Generation (ages 66 and older) – this generation has the highest VantageScore along with the lowest average debt and the lowest utilization rate. This generation doesn’t use much credit, but whatever they do use, they manage very well.
Baby Boomers (ages 47-65) – this generation has the highest average balance on its credit cards along with the highest average number of credit cards. However, with a VantageScore of 700, they seem to manage their high-use of credit very well.
Generation X (ages 30-46) – this generation has the highest debt load out of all of the other generations and use the more of their credit limit than anyone else while maintaining a lower VantageScore than the national average. This generation uses a lot of credit and could improve a little in how they manage it.
Millennials (ages 19-29) – this generation has the lowest VantageScore and one of the highest utilization rates, however both their average debt and balance per card fall below the national average. So, with low credit limits (as it would seem), millennials still struggle overall to manage their money.
This is an interesting study, however it falls right in line with how you’d think it would. On average, the older people with more experience and more accumulated wealth tend to manage money better than the younger people with less experience and less accumulated wealth.
How do you compare to your generation? Are you a millennial with great credit? Are you a baby boomer with awful credit? Or do you fit in this model perfectly?
If you’re one of these consumers with high debt and you’re struggling to pay the bills, a bankruptcy may be something to consider. At Darrell Castle & Associates, our experienced Memphis bankruptcy attorneys can help you with that decision.
And if you’re in that position, please don’t let a bankruptcy scare you as it can actually serve as your opportunity for a fresh start to re-establish and rebuild your credit the right way. A bankruptcy law firm Memphis, TN trusts, like the team at Darrell Castle & Associates, can help manage the best timing for your case.
We offer a 14-week program, “7 Steps to 720,” that can help you with that, free to our clients.
If you’re considering bankruptcy or if you have any questions, please contact us today, either online or by calling us at (901) 327-2100 and one of our attorneys will be glad to speak with you, free of charge.