Debt and the Millenials

"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 

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