The idea that millennials have more debt is an ‘urban myth’

It’s easy to fall into the trap of common perception regarding millennials.

They don’t want to buy homes, they want jobs that align with their values, they have a mountain of debt from student loans and more.

Well, at least on the last one, you’d be wrong.

A chart from Deutsche Bank Economist Torsten Sløk shows that millennials, ages 20 to 35, have less debt than that same age cohort in 2003.

“It is an urban myth that the young generation today is more indebted, it is the older generations that have higher debt levels,” said Sløk in a note. “The reason is that since 2009 it has been difficult for Millennials to get a loan. As a result, 25 to 35 year olds today have less debt than in 2003.”

Yes, millennials may have an increasing load of student debt, but they are also not taking out as many mortgages or other loans, therefore their total debt load is lower than the generation before them.

Whether or not millennials are “snake people” may be up for debate, but the idea that they are saddled with more debt is not.

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