Debt and the Millenials

Monday, March 12, 2007 | 11:45 AM

"It's the single greatest problem facing this generation."

-William Strauss, co-author of Millennials Rising, a 2000 book that identified the generation born from the early 1980s to the early 2000s.

 

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We've looked at the increasing pressure on the Middle Class over the past few years. Now, we see where this debt is having a particularly strong impact:  the twentysomethings:

"This generation of twentysomethings is straining under the weight of college loans and other debt, a crushing load that separates it from every previous generation.

Nearly two-thirds carry some debt, and those with debt have taken on more in the past five years, according to an analysis of the credit records of 3 million twentysomethings that Experian, the credit-reporting agency, did for USA TODAY. Their late payments are rising, and they're more likely to be late than other Americans are.

Nearly half of twentysomethings have stopped paying a debt, forcing lenders to "charge off" the debt and sell it to a collection agency, or had cars repossessed or sought bankruptcy protection.

High debt loads are causing anxiety, too. A poll of twentysomethings by USA TODAY and the National Endowment for Financial Education (NEFE) found 60% feel they're facing tougher financial pressures than young people did in previous generations. And 30% say they worry frequently about their debt."

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Yd_topper_01

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There are some people who insist that the lack of domestic savings nationally is no big deal. I suspect the wrongheadness of their arguments will be felt acutely by this generation of debt laden youth . . .


UPDATE: March 12, 2006 1:45pm

Young_in_debt_2I tracked down this other chart I thought was instructive:


 

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Source:
Young people struggle to deal with kiss of debt
Mindy Fetterman and Barbara Hansen,
USA TODAY, 11/20/2006 1:49 AM ET
http://tinyurl.com/w4k4c 

Monday, March 12, 2007 | 11:45 AM | Permalink | Comments (69) | TrackBack (0)
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Comments

How about the national debt, not just personal?

As one of those twentysomethings, as much as it pains me to admit it, looking at the huge pile of debt the previous generation/government has left for us to deal with, sometimes I just feel like giving up and leaving the country.

I don't know how many young people share my view right now, but I do wonder how many will try to get out once they see the ship is sinking.

Posted by: Adam | Mar 12, 2007 12:05:11 PM

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