Money Guy Show: "How Much Debt Do Americans Have? (By Age AND By Type!)"

Hosts: Brian Preston & Bo Hanson
Release Date: December 5, 2025

Episode Overview

Brian and Bo dive deep into the state of American debt, breaking down average debt levels by generation (Gen Z, Millennials, Gen X, and Baby Boomers) and by debt type (student loans, auto loans, mortgages, and credit cards). Framing debt as a double-edged sword, they provide both alarming statistics and actionable strategies to help listeners take control of their financial futures—emphasizing the importance of being intentional and aware at every stage of life.

Key Discussion Points & Insights

1. The Debt Landscape in America

The average American owes $23,000 in non-mortgage debt ([01:28])
Only 53% have more emergency savings than debt; about half couldn't cover three months' expenses without additional borrowing ([01:47]-[02:04])

“The average American has $23,000 of non-mortgage debt and one out of two Americans could not cover an expense without going into debt. That is problematic. That’s not the way that we want you living…” – Bo ([02:16])

2. Generation-by-Generation Debt Breakdown

Gen Z (Ages 18–28)

Student Loan Debt: $19,000 average
Auto Loan Debt: $21,000 average; $577/month payment ([04:00]-[04:25])
Mortgage Debt: $248,000 average
Credit Card Debt: $3,700 average carried month-to-month

“$577... is almost the exact amount it would take to max out a Roth IRA if you just did that on a monthly basis. And yet, it’s going to automobiles, it’s going to debt.” – Bo ([04:32])

Total Average Debt: $23,300 ([05:03])

Lessons & Action Steps

Student Loans: Don’t take on more student debt than your anticipated first-year post-graduation salary (“first year financing rule”) ([06:19])
Auto Loans: Use the “23/8” rule – 20% down, payoff in 3 years, payment <8% of gross income ([08:08])
- No luxury cars; car payment shouldn’t exceed investment amounts
- “Do the used reliable car in this stage of life.” – Brian ([09:56])
Credit Cards: Never carry a balance; use credit only if paid in full monthly ([10:06]-[11:34])

Millennials (Ages 29–44)

Student Loan Debt: $33,500 average
Auto Loan Debt: $26,000 average; $735/month payment ([13:20]-[14:30])
Mortgage Debt: $306,000 average
Credit Card Debt: $7,600 average carried month-to-month
Total Average Debt: ~$63,000 ([15:45])

“63% of student loans right now are either the same or higher than when the loan was first issued…” – Bo ([13:47])

Lessons & Action Steps

Student Loans: Don’t rush to pay off low-interest student debt at the expense of building wealth; prioritize investing while compounding works in your favor ([16:09]-[17:04])
Mortgages: Apply the "3/5/25" rule for first homes: 3–5% down, live there at least 5 years, monthly cost <25% of gross income ([17:52]-[18:58])
Upgrading Cars: Use the car-buying calculator to stay within means, resist luxury purchases, and focus on reliable transportation ([20:14]-[21:52])
Lifestyle Creep: Don’t let rising income lure you into unsustainable spending ([22:31])
Credit Cards: Same as for Gen Z—use, but never carry balance ([22:31])

Gen X (Ages 45–60)

Student Loan Debt: $46,000 average; average account open 32 years! ([27:49])
Auto Loan Debt: $28,000 average; $839/month payment
Mortgage Debt: $264,000 average
Credit Card Debt: $10,000 average
Total Average Debt: ~$70,000 ([29:48])

“The average account age [for student loans] is 384 months. That means that these Gen Xers have had student loan debt on average for 32 years.” – Bo ([28:20])

Lessons & Action Steps

Mortgages: Okay to pay off aggressively only if retirement/savings are on track; otherwise, build assets first ([29:48]-[30:49])
Home Upgrades: Must put at least 20% down on second/upgraded homes ([30:49])
Auto Loans: "If you’re a Gen Xer and you can’t pay cash for cars… you’re buying too nice of a car." – Brian ([29:20], [31:39])
Credit Cards: If you’re still carrying balances, “perhaps you should get rid of your credit cards altogether.” – Bo ([32:41])

Baby Boomers (Ages 61–79)

Student Loan Debt: $48,000 average; 27-year average account age ([33:44])
Auto Loan Debt: $24,000 average; $574/month payment
Mortgage Debt: $200,000+ average
Credit Card Debt: $8,100 average
Total Average Debt: $56,000 ([34:39])

“Are you truly financially independent if you have a mortgage? I would say I don’t think so.” – Brian ([35:02])

Lessons & Action Steps

Mortgages: Should be fully paid by retirement; debt-free equals true independence ([35:02])
Auto Loans: No car loans—cash only at this age ([35:27])
Credit Cards: Carrying balances means you’re “not a credit card person”—consider quitting cards altogether ([35:41])
Big Picture: Your start doesn’t dictate your finish—take control at any age ([36:52])

Notable Quotes & Memorable Moments

“Debt: America’s favorite four-letter word. Are you doing better than the average American?” – Brian ([00:58])
“[For Gen Z] The 20s…if you just do anything for the positive with saving and investing you, you’re going to be rewarded many times over.” – Brian ([03:09])
“Faking it until you make it is actually a failure when it comes to finances.” – Brian ([22:31])
“How your journey started does not have to define how it ends. You actually get to be the hero of your own financial story.” – Brian ([36:52], [37:10])

Timestamps for Key Segments

[01:28] – The state of debt in America and emergency savings
[02:45] – Introduction of generational debt breakdown
[04:00] – Gen Z debt statistics and discussion
[06:19] – Rule: Don’t borrow more in student loans than first-year salary
[08:08] – The 23/8 rule for auto loans
[11:34] – Millennials: "Messy middle" era begins
[13:20] – Millennial debt statistics and red flags
[17:52] – 3/5/25 home purchasing rule
[20:14] – Car buying for Millennials: Avoid lifestyle creep
[27:10] – Gen X: Expectations vs. reality on debt at mid-life
[29:48] – Gen X debt recap and remedial steps
[33:11] – Baby Boomers: Debt realities close to/in retirement
[35:02] – Final financial advice for Boomers and general audience

Closing Encouragement

The hosts make clear:

It’s never too late to change your financial trajectory.
“How your journey started does not define how it ends… Take control, be an active participant in your financial life.” ([36:52])
For tools, calculators, and more, visit moneyguy.com

This episode offers a deep, candid, and motivating look at the realities of debt across generations, pairing tough love with practical, actionable rules to help listeners at any age escape the debt trap and build true wealth.

Money Guy Show: "How Much Debt Do Americans Have? (By Age AND By Type!)"

Hosts: Brian Preston & Bo Hanson
Release Date: December 5, 2025

Episode Overview

Key Discussion Points & Insights

1. The Debt Landscape in America

The average American owes $23,000 in non-mortgage debt ([01:28])
Only 53% have more emergency savings than debt; about half couldn't cover three months' expenses without additional borrowing ([01:47]-[02:04])

“The average American has $23,000 of non-mortgage debt and one out of two Americans could not cover an expense without going into debt. That is problematic. That’s not the way that we want you living…” – Bo ([02:16])

2. Generation-by-Generation Debt Breakdown

Gen Z (Ages 18–28)

Student Loan Debt: $19,000 average
Auto Loan Debt: $21,000 average; $577/month payment ([04:00]-[04:25])
Mortgage Debt: $248,000 average
Credit Card Debt: $3,700 average carried month-to-month

“$577... is almost the exact amount it would take to max out a Roth IRA if you just did that on a monthly basis. And yet, it’s going to automobiles, it’s going to debt.” – Bo ([04:32])

Total Average Debt: $23,300 ([05:03])

Lessons & Action Steps

Student Loans: Don’t take on more student debt than your anticipated first-year post-graduation salary (“first year financing rule”) ([06:19])
Auto Loans: Use the “23/8” rule – 20% down, payoff in 3 years, payment <8% of gross income ([08:08])
- No luxury cars; car payment shouldn’t exceed investment amounts
- “Do the used reliable car in this stage of life.” – Brian ([09:56])
Credit Cards: Never carry a balance; use credit only if paid in full monthly ([10:06]-[11:34])

Millennials (Ages 29–44)

Student Loan Debt: $33,500 average
Auto Loan Debt: $26,000 average; $735/month payment ([13:20]-[14:30])
Mortgage Debt: $306,000 average
Credit Card Debt: $7,600 average carried month-to-month
Total Average Debt: ~$63,000 ([15:45])

“63% of student loans right now are either the same or higher than when the loan was first issued…” – Bo ([13:47])

Lessons & Action Steps

Student Loans: Don’t rush to pay off low-interest student debt at the expense of building wealth; prioritize investing while compounding works in your favor ([16:09]-[17:04])
Mortgages: Apply the "3/5/25" rule for first homes: 3–5% down, live there at least 5 years, monthly cost <25% of gross income ([17:52]-[18:58])
Upgrading Cars: Use the car-buying calculator to stay within means, resist luxury purchases, and focus on reliable transportation ([20:14]-[21:52])
Lifestyle Creep: Don’t let rising income lure you into unsustainable spending ([22:31])
Credit Cards: Same as for Gen Z—use, but never carry balance ([22:31])

Gen X (Ages 45–60)

Student Loan Debt: $46,000 average; average account open 32 years! ([27:49])
Auto Loan Debt: $28,000 average; $839/month payment
Mortgage Debt: $264,000 average
Credit Card Debt: $10,000 average
Total Average Debt: ~$70,000 ([29:48])

“The average account age [for student loans] is 384 months. That means that these Gen Xers have had student loan debt on average for 32 years.” – Bo ([28:20])

Lessons & Action Steps

Mortgages: Okay to pay off aggressively only if retirement/savings are on track; otherwise, build assets first ([29:48]-[30:49])
Home Upgrades: Must put at least 20% down on second/upgraded homes ([30:49])
Auto Loans: "If you’re a Gen Xer and you can’t pay cash for cars… you’re buying too nice of a car." – Brian ([29:20], [31:39])
Credit Cards: If you’re still carrying balances, “perhaps you should get rid of your credit cards altogether.” – Bo ([32:41])

Baby Boomers (Ages 61–79)

Student Loan Debt: $48,000 average; 27-year average account age ([33:44])
Auto Loan Debt: $24,000 average; $574/month payment
Mortgage Debt: $200,000+ average
Credit Card Debt: $8,100 average
Total Average Debt: $56,000 ([34:39])

“Are you truly financially independent if you have a mortgage? I would say I don’t think so.” – Brian ([35:02])

Lessons & Action Steps

Mortgages: Should be fully paid by retirement; debt-free equals true independence ([35:02])
Auto Loans: No car loans—cash only at this age ([35:27])
Credit Cards: Carrying balances means you’re “not a credit card person”—consider quitting cards altogether ([35:41])
Big Picture: Your start doesn’t dictate your finish—take control at any age ([36:52])

Notable Quotes & Memorable Moments

“Debt: America’s favorite four-letter word. Are you doing better than the average American?” – Brian ([00:58])
“[For Gen Z] The 20s…if you just do anything for the positive with saving and investing you, you’re going to be rewarded many times over.” – Brian ([03:09])
“Faking it until you make it is actually a failure when it comes to finances.” – Brian ([22:31])
“How your journey started does not have to define how it ends. You actually get to be the hero of your own financial story.” – Brian ([36:52], [37:10])

Timestamps for Key Segments

[01:28] – The state of debt in America and emergency savings
[02:45] – Introduction of generational debt breakdown
[04:00] – Gen Z debt statistics and discussion
[06:19] – Rule: Don’t borrow more in student loans than first-year salary
[08:08] – The 23/8 rule for auto loans
[11:34] – Millennials: "Messy middle" era begins
[13:20] – Millennial debt statistics and red flags
[17:52] – 3/5/25 home purchasing rule
[20:14] – Car buying for Millennials: Avoid lifestyle creep
[27:10] – Gen X: Expectations vs. reality on debt at mid-life
[29:48] – Gen X debt recap and remedial steps
[33:11] – Baby Boomers: Debt realities close to/in retirement
[35:02] – Final financial advice for Boomers and general audience

Closing Encouragement

The hosts make clear:

It’s never too late to change your financial trajectory.
“How your journey started does not define how it ends… Take control, be an active participant in your financial life.” ([36:52])
For tools, calculators, and more, visit moneyguy.com

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How Much Debt Do Americans Have? (By Age AND By Type!)

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Summary

Money Guy Show: "How Much Debt Do Americans Have? (By Age AND By Type!)"

Episode Overview

Key Discussion Points & Insights

1. The Debt Landscape in America

2. Generation-by-Generation Debt Breakdown

Gen Z (Ages 18–28)

Millennials (Ages 29–44)

Gen X (Ages 45–60)

Baby Boomers (Ages 61–79)

Notable Quotes & Memorable Moments

Timestamps for Key Segments

Closing Encouragement

Summary

Money Guy Show: "How Much Debt Do Americans Have? (By Age AND By Type!)"

Episode Overview

Key Discussion Points & Insights

1. The Debt Landscape in America

2. Generation-by-Generation Debt Breakdown

Gen Z (Ages 18–28)

Millennials (Ages 29–44)

Gen X (Ages 45–60)

Baby Boomers (Ages 61–79)

Notable Quotes & Memorable Moments

Timestamps for Key Segments

Closing Encouragement