Various challenging economic factors are hindering millennials’ path to financial success.

Regrettably, being debt-free is a rare occurrence among young Americans today. Debt has become almost synonymous with millennials due to reasons like continuously increasing student loan debt and escalating living expenses. Surprisingly, it is not student loan debt that is the biggest financial burden on millennials; rather, it is credit card debt. As per a survey conducted by LendingTree, 67% of millennials have credit card debt, while only 36% have student loan debt. The survey also highlighted the lack of confidence among millennials in their ability to pay off their debts, with nearly 25% believing they will never be debt-free.

Currently, the average interest rate on credit cards stands at 17%, with rates typically ranging between 15% to 25%. Some Democratic presidential candidates have proposed capping credit card interest rates as part of their policy. While a 17% interest rate may not seem exorbitant, millennials dealing with this debt alongside others often find themselves trapped in a distressing cycle of indebtedness.

Although credit card debt weighs more heavily on millennials, student loan debt compounds the financial strain on over a third of Americans, making the battle against debt seem insurmountable. With many individuals balancing student debt, credit card debt, and potentially other financial obligations like car loans or mortgages, the financial outlook for a significant number of millennials appears challenging.