Generation X: Racking up debt — and paying a price for it

The report expresses concern about how Gen Xers are using credit to finance their lifestyles. Nearly half (46 percent) of Gen Xers say they revolve their credit card balances (only paying a portion each month) compared with only 32 percent of boomers.

Upshot: Gen Xers are less able to save for the future as more of them (23 percent versus 19 percent of boomers) say they believe “you can’t save for retirement until you pay off credit cards.” 

“Over the last three decades, there has been a collective shift in how people view debt — it’s now perceived as a normal part of one’s financial experience and that has fundamentally altered the way people spend and save,” says Katie Libbe, Allianz Life vice president of Consumer Insights. “If Gen Xers continue to delay saving for retirement until they are completely out of debt, their nest egg is clearly going to suffer.”

Among the report’s additional findings: 

• 36 percent of Gen Xers say they currently have more than $5,000 in credit card debt and a quarter admitted to carrying more than $10,000.

• 15 percent of Gen Xers say they also owe money to their parents.

• 41 percent of Gen Xers say they are not comfortable with the amount of debt they have, while just a quarter of boomers reported feeling uneasy with their debt.

• One in five Gen Xers believe that going into debt to handle day-to-day purchases is “just a fact of life” versus only 14 percent of boomers. Half of Gen Xers say they “enjoy and live for today” versus only 39 percent of baby boomers, with the majority of boomers (61 percent) choosing “save and plan for tomorrow.”

• 73 percent of boomers said they are clear about how much money they will need in retirement versus only 52 percent of Gen Xers.