Boomers interested in getting loans on the popular online loan marketplace LendingTree saw their debt increase during pandemic by an average of 8,848 US dollars, or 6.7 percent.
The company’s analysis of 340,000 anonymous credit reports from users showed that boomers’ debt rose at a time when prospective Gen Z, Millennial and Gen X borrowers reduced their debt.
Millennials have cut their debt by an average of $ 9,117, while Gen Z has cut it by the largest percentage at 17 percent. However, the baby boomers started 2019 with a debt of $ 132,039, but allowed it to rise to $ 140,887 by 2021.
The increase in the amount of debt of buyers of loans during the boom was most likely due to mortgage debt, which increased from 69.6 percent of their total debt to 72.7 percent in 2021. 3.9 percent of their total debt), student loans (5.3 to 4.8 percent), credit cards (8.6 to 8.3 percent), and car loans (10.6 to 10.3 percent) …
Matt Schultz, chief credit analyst at LendingTree, said in an email that it is unclear why the boomers in the study are seeing rising mortgage costs. He suggested that one explanation for the increase in mortgage debt is that some baby boomers may have bought houses at higher prices as a result of lower interest rates… It could also happen that some took a mortgage loan during the pandemic, but paid other bills, leaving them with a higher percentage of mortgage debt.
Schultz warned that taking on more debt in a still volatile economy is risky. “Your best move – especially for boomers who are more likely than others to have a fixed income – is keep paying this debt, keep building up this emergency fund and keep strengthening your financial base to weather any storm that may come next. “