Millennials Are $1 Trillion In Debt

Young adults are facing their highest debt in a decade, and their spending habits reflect it. According to an article by Bloomberg, the New York Federal Reserve Consumer Credit Panel found that debt among 19 to 29-year-old Americans surpassed the $1 trillion mark at the end of last year, the highest among the age group since 2007.

Student loan debt accounted for the majority of the $1 trillion debt, followed by mortgage debt, according to the article. The article cites a study by the University of Michigan that found that adults under 35 are also spending less overall than the generations that came before. 

Reduced millennial spending can affect businesses of all types, from small businesses to startups to franchises, and suppress economic growth overall—which is why conversations surrounding student loan forgiveness programs have entered the political arena in recent years, according to the article.

Recently, franchise brands have begun addressing the student loan debt crisis on their own terms: Chick-fil-A, Papa John’s and other brands have increased employee scholarship funds in order to cut down on student debt and encourage better future employment opportunities.

Read the full Bloomberg article here.