Four in 10 millennials are overwhelmed by debt, with almost half spending at least 50 percent of their monthly paycheck paying off debt, a new study by Wells Fargo found. More than half—56 percent—reported living paycheck to paycheck.
Credit cards are the biggest drain on millennials' wallets, followed by mortgages and student loans.
However, millennials are optimistic—72 percent said they are confident they'll be able to save enough to have the lifestyle they want in the future.
"They're overconfident, they're extremely optimistic if you compare them to other generations," Dan Schawbel, founder of Millennial Branding and author of "Promote Yourself," told CNBC's "Power Lunch."
"Honestly, it's not there for them. A third don't think they're going to have the same standard of living as their parents did and that's a huge problem."