The young, broke, and indebted American: 45 percent of 25 year olds carry student debt and the median net worth of those 35 and younger is one month of expenses.

Tuesday, March 10, 2015
By Paul Martin

MyBudget380.com
Mar. 10. 2015

It is clear looking at economic data that young Americans were not sent the memo regarding this economic recovery. People do realize that the “Great Recession” officially ended in the summer of 2009, right? We’re heading into year six of this recovery but many are simply seeing lower paying jobs, a deeper reliance on debt, and inflation hitting in important segments of our economy. For example, some of the top employment sectors in our country are in the form of food services and retail that tend to hire a disproportionately large amount of young workers. But with more people going to college and taking on record levels of debt, working retail is not going to cut it. Back in 2000 about 25% of 25 year olds carried some form of college debt. Today that percentage is up to 45%. That is a major jump and shows that for many, simply going to college requires some form of debt assistance. And that is why we now have over $1.2 trillion in outstanding student debt across the country. But young Americans are also seeing hits to their net worth. Let us look at the “recovery” for young Americans.

In debt we trust

We now seem to be programmed into debt dependence. Need a car? Take on an auto loan even if it means getting a subprime loan. Want a home? Take on a big mortgage with a low interest rate to hide the fact of the big amount. Need an education? Student loans are there to help you, regardless of your income level. All of this has created a heavy reliance on debt. And with 45% of 25 year olds now carrying student debt, the young person with no college debt is looking like the exception.

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