This Generation Carries More Debt Than Any Other

Being in debt is not uncommon, and it's by no means a sign of a financial shortcoming. Plenty of people borrow money to buy cars, attend college, and finance home purchases and renovations. But there can be such a thing as having too much debt. And the older you are, the more dangerous debt becomes, as it can be very difficult to pay off in retirement.

You may be curious as to which generation has the most debt. And the answer might also surprise you.

Congrats, Gen X -- you've borrowed the most

Members of Gen X, who are roughly 43 to 58 years old, have a total average amount of $157,556 of debt, according to Experian. That's far more than any other generation. In fact, millennials come in second to Gen Xers when it comes to household debt. But their average total debt sits at $125,047.

Why are Gen Xers so overloaded with debt? There could be several reasons.

For one thing, many Gen Xers entered college at a time when prices were starting to soar. That may have forced a large number of students to finance their education. Furthermore, Gen Xers -- at least older ones -- may now be at an age where they're paying off educational loans not just for their own degrees, but for their kids' degrees, too. Talk about a double debt whammy.

Also, Gen Xers who bought homes in their 20s or 30s may not be free of their mortgages if they signed 30-year loans. Someone who bought a house at age 32 and is 55 today might understandably have more years to go until they're debt-free.

Why Gen Xers should try to pay off debt ASAP

Being in debt isn't optimal in general. But it could be notably problematic for older Gen Xers who may be within five to 10 years of retirement. Technically, you don't have to shed all of your debt ahead of retirement. But many retirees have to live on less income once their paychecks from work disappear.

Let's say you're currently juggling $2,000 in monthly debt payments and bring home a $6,000 paycheck. That may be manageable. But if your monthly income shrinks to $3,500 a month in retirement, suddenly, forking over more than half of that sum to make debt payments could be very stressful. So it's best to try to shed as much debt as possible before your career wraps up.

Steps to tackling debt

No matter your age, the sooner you get rid of your debt, the less money you'll spend on interest. So it pays to come up with a plan to become debt-free, or as close as possible. Here's how.

• Figure out which debts need your attention first. If you have a mortgage you're paying 3% on, worry less about that and more so about your credit card charging you 20% on your balance.
• Consolidate debt when it makes sense to do so. There's no need to juggle credit card balances ranging from 20% to 30% APRs when you may qualify for a personal loan at 8%. You can then roll those balances into that loan and pay it off without having to worry about your rate climbing over time.
• Trim spending to a reasonable degree. You don't need to slash every fun expense in your budget. But consider scaling back on spending a bit to get ahead of your debt. There's probably at least one expense you're paying for right now that you can do without, whether it's a rarely used gym membership or a subscription box you mostly forget about.
• Join the gig economy. Working a side hustle could give your income a nice boost and make it easier to pay off debt without having to cut expenses. And if you're close to retirement, you may want to set yourself up with a part-time gig you can continue to hold down once your career wraps up. That way, you'll have some extra income at your disposal to replace your missing paycheck on top of savings and Social Security.

It's not all that shocking to see that Gen X wins in the "most debt" category. But it's a good idea to get ahead of your debt no matter your age. And the less debt you have, the more money you can put to work by saving or investing it.