Gen X, Millennials Report the Most Crushing Debt

Newsweek

06-05-2025

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While Gen Z may have a reputation for being more financially troubled, new data reveals that Gen X and millennials are far more likely to carry unmanageable debt.
These age groups were in some cases nearly twice as likely to report debt they can't afford to pay off as baby boomers and significantly higher than Gen Zers as well, according to new data from Experian.
Why It Matters
Gen X—born between 1965 and 1980—has often been characterized as the sandwich generation, nestled between baby boomers and millennials.
Gen X has avoided some of the economic uncertainty that millennials and Gen Z may have faced in their childhood and early adulthood, but they often find themselves taking on unmanageable debt. Because many Gen Xers have elderly parents and children attending college, many find themselves with debt they feel unable to pay off.
Gen X and millennials are far more likely to carry unmanageable debt than other generations, according to new data from Experian.
Gen X and millennials are far more likely to carry unmanageable debt than other generations, according to new data from Experian.What To Know
New data from Experian revealed that Gen X and millennials were far more likely to have unmanageable debt than other generations.
While 27 percent of Gen X respondents said they have unsecured debt that is unmanageable, only 18 percent of Gen Z and 15 percent of baby boomers said the same. Only millennials came in higher, with 28 percent saying they had unsecured debt that is unmanageable.
When broken down by gender, men had a slight edge on women, with only one in five reporting unmanageable debt, compared to one in four women.
Across the board, 25 percent of all Americans are facing unsecured debt that they say is "unmanageable," the survey found.
Consumers in the United States owed $17.57 trillion in total debt as of the third quarter of 2024, according to Experian.
An H&R Block 2024 Outlook on American Life Report found that while Gen X had the most credit card debt of the generations, Gen Z felt more "burdened" by it.
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "It's no surprise we see rising rates of unmanageable unsecured debt among millennials and Gen X. Both of these generations are reaching a point in their professional careers where their earning power is increasing and, depending on age, peaking. However, with those higher wages tend to come a higher standard of living, and with costs continually increasing, Gen X are leaning more on debt to finance maintaining their lifestyles."
Rod Griffin, senior director of public education and advocacy for Experian, told Newsweek: "The pendulum is starting to move a bit toward people having more issues with repaying the debt. For quite a while, we saw the level of credit card debt increased but the ability of people to make those payments seemed to be very strong. We didn't see increasing delinquencies, didn't see people having significant difficulty. We're starting to see people have a bit more now."
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "They're [Gen X] not crushed by student loans like millennials or Gen Z, and many are hitting their stride in their 40s and 50s, earning more than ever. But here's the truth: Some are hustling hard to make up for lost time on retirement savings, while others have basically thrown in the towel, resigned to the idea that they'll be working forever. This generation is walking a tightrope between opportunity and burnout. Some are catching up while others are trying to hang on."
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: "Gen X isn't failing at money management; they're failing at time travel, trying to fund three generations' lives with one generation's income. And the cruelist irony? They'll finally pay off their kids' student loans just in time to move into their children's spare bedrooms."
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "Gen Xers are increasingly finding themselves juggling a child's college tuition, their own mortgage, in addition to the hard and soft-dollar expenses associated with caring for their baby boomer parents. Even if you are not paying your parents' bills, you may be taking time away from work to drive them to doctor's appointments or the grocery store. Whether it's cash out of pocket or time away from work, it all adds up to financial strain."
What Happens Next
Along with the COVID-19 pandemic, rising inflation and interest rates, Gen X and millennials have felt the hit to their wallets and subsequently their credit.
"Wages never keep up with inflation in the short term, so many Gen Xers have had to turn to using more and more credit to pay for everyday expenses," Powers said.
As the sandwich generation, Gen X is likely to face more hurdles moving forward as their parents become older and their children's student loans pile up.
"They're caught in a financial storm," Ryan said. "Paying for college they can't afford for kids who can't find jobs, while supporting parents who outlived their savings."