It is not uncommon here in the U.S. to carry a fair amount of debt. In fact, depending on your age, it might be especially common. A recent analysis looked into the debt averages of different age groups. It sheds light on what age-range sees a particularly large amount of debt.
Two age groups at the top
Specifically, high debt appears to be rather common among individuals in their mid-30s to mid-50s. The analysis found there to be an average debt of $134,600 for people 45 to 54 and $133,100 for people 35 to 44. These were by a wide margin the two highest totals of any age group.
Only one other age group had an average debt that topped $100,000. That was the 55 to 64 group. All the remaining groups had an average below $70,000. The group with the lowest average was individuals 75 and older. Their average was $34,500.
Why is debt high among individuals 35 to 54? Among the possible reasons put forward are that this is a time of life when many people are:
- Raising families and encountering the many costs connected to this.
- Feeling confident in where they are in their career and in their earning capacity.
The challenges of high debt
Having a particularly high amount of debt can have certain risks. It could make a person more vulnerable to financial struggles in the wake of unexpected events, such as big sudden medical expenses, job loss or a big pay cut. So, when in you are in a typically high-debt time of life, it can be important to give careful thought to what debt level is manageable for you and how to put yourself in to a position to be able to weather unexpected financial shocks should they arise.
When it comes to debt struggles, many factors can be at play
Now, many things can influence a person’s potential vulnerability to financial shocks beyond just how much debt they have. This includes things like the types of debt they have, their income level, how stable their income streams are, etc. So, the circumstances in which individuals could find themselves in debt struggles can be quite varied.
When you encounter debt problems at any age, your individual circumstances can impact many things. This include whether either of the two main types of personal bankruptcy, Chapter 7 and Chapter 13, would be likely to be a good source of relief for you. So, getting guidance tailored to your unique situation can be important when deciding how to respond to debt difficulties.