Austin millennials burdened with some of the highest debt in the U.S.
For millennials, the Capital City can sometimes feel like Debt City. A new study from online lending marketplace LendingTree shows millennials in the Austin metro area carry the third highest amount of personal debt among millennials in the country’s 50 largest metros.
The Austin metro area ranked No. 3 for the highest amount of non-mortgage debt, at $26,164, according to LendingTree. The highest percentage of personal debt in Austin are auto loans (37.1 percent) and, of course, student loans (35.4 percent). Credit cards (18.1 percent) come in next followed by personal loans at 7.6 percent and “other” at 1.8 percent.
“The millennial generation makes up the younger portion of adults, and as they build their careers, families, and communities, they’re doing it encumbered by personal debt,” Kali McFadden, senior research analyst at LendingTree, says in a release.
While Austin ranked high, San Antonio actually took the No. 1 spot in the report. In the San Antonio area, median debt for millennials (excluding a mortgage) was $27,122, according to the study. Auto loans accounted for 43.2 percent of the average debt for millennials in the region, with student loans at 30.2 percent, credit cards at 14.8 percent, personal loans at 9.4 percent, and “other” at 2.4 percent.
Millennials in Texas’ other major metros aren’t much better off than their counterparts in San Antonio when it comes to debt like student and auto loans, the study shows. At No. 4 was Houston ($25,978) and Dallas-Fort Worth appeared at No. 6 ($25,939).
Like San Antonio, Houston millennials had a big chunk of debt earmarked for auto loans (42.5 percent), with student loan debt at just 29.9 percent. The share of credit card debt was 16 percent, with personal loans at 9.5 percent and “other” at 2 percent.
The story was similar in Dallas-Fort Worth, although student loan debt was higher (33.3 percent) than in San Antonio or Houston. In DFW, auto loan debt was at 39.9 percent, credit card debt at 16 percent, personal loan debt at 8.8 percent, and “other” at 1.9 percent.
Among the 50 largest metros, the median amount of millennial debt was $23,064.