Why Are So Many Millennials in Debt? The Hip but Ugly Truth

Written By Melissa Cook
Aug 15, 2018
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Millennials are known for their love of travel, social media, and avocado toast. But increasingly America’s millennials are being defined by debt. Since they are now the country’s largest generation—83.1 million people, according to the US Census Bureau—the millennial debt crisis is a national issue.

Millennials are the most indebted generation in history. A quarter of all US citizens aged 18 to 34 owe more than $30,000. This startling figure is from a new poll conducted by NBC and The University of Chicago. As this is a poll the data is self-reported, so the real figure could be even higher.

But what’s so wrong with millennials? They’re not especially lazy, and they’re currently in their workforce prime. What’s leading to so much millennial debt? Here are a few key factors:

Student Loans

Millennials are also the most educated generation in American history, which unfortunately coincides with a drastic decrease in government funding for higher education. Student loans have made up the difference. According to the Federal Reserve, the average millennial college grad holds $22,135 in student loan debt. Many college students need to accept loans to fund their tuition and educational expenses because their parents can’t afford to help them out, despite the bill that will be waiting for them at their graduation.

2008 Recession

More unfortunate timing for millennials: many of them entered adulthood during the largest financial disaster since the 1930s. Plenty of fully qualified grads were left jobless, living in their parents’ basement, and surviving off credit cards. The Merrill Edge Report found the 2008 Recession affected how millenials spend, save and manage their money. Many didn’t have the ability to save because of the credit card minimum payments they were having to make each month.

Credit Cards

Unlike earlier generations, millennials have easy access to quick cash and credit, which makes spending on essential or non-essential goods almost impossible to resist, especially when you have to have the craft IPA every night out. Millenials using credit cards continue to swipe without thinking how much debt they are racking up, which comes to haunt them after their debt has become too much to handle. 

If you’re a millennial swamped by credit card debt, Americor can help. Contact us today for a free consultation. Our debt solutions will have you back on your feet (and out of your parents’ basement) in no time.


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Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

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We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

Americor Funding, LLC (18200 Von Karman Ave, 6th Floor Irvine, CA 92612) is fully accredited by the Better Business Bureau (BBB), the American Fair Credit Council (AFCC), and the International Association of Professional Debt Arbitrators (IAPDA). CA Department of Financial Protection and Innovation (DFPI) License # 603K913.

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