Debt Burden Rising for Young People
For many of today’s twentysomethings, higher education means high debt and higher stress. The average student-loan debt is about $14,000, though a small and fast-growing group of graduates ages 22–29 owe $20,000 and more for their student loans. The average amount of revolving debt (e.g., credit cards) for this same age group is more than $5,700.
I remember walking the streets of the University of Houston and seeing credit card hounds stalking students as they walked to their cars. They would offer a cool gift if they signed up for a low balance credit card, telling you things like, “It will help build your credit”. I think that’s where debt problems start for young people.
And student loans are another story; trying to work full-time while paying your way through college is a burden unto itself. It’s no wonder why nearly two-thirds of twentysomethings carry debt.
August 8, 2008 at 2:06 pm
There was a story a while back on 20/20 about these college kids who actually committed suicide after they were so overwhelmed by their credit card debt. Their parents had already bailed them out once and they ran the credit cards back up. That is just too sad and scary to think about the pressures that young people are faced with when they are out on their own for the first time.
August 11, 2008 at 3:53 pm
I hear that in some European countries college & other forms of higher education are free. Isn’t it a shame we can’t implement that here? College should be free in America. It’s too bad the government & people here can’t get their priorities straight.
August 12, 2008 at 11:21 am
I agree, I think that with the taxes that we pay, health care and education should be free.
August 13, 2008 at 8:52 am
I agree education should be free. I was lucky enough I went through college not having to get a loan or a credit card. Everyday I see young people my age with horrible credit. I actually take pride in having good credit. I think young people are just naive and poor educated about credit and how important it is in the future. But then again their parents are probably the same way…bad credit too. I’ve been working for a credit union since I was 16 or 17 and I started out filing so I saw people’s differ credit scores and would ask questions about the numbers, that’s how I was informed. If not I’d probably in the same situation as most 25 yr olds…in debt.