Over half of US student loan borrowers racked up credit card debt during the payment pause—now experts worry about 'shock'
Over half of US student loan borrowers racked up credit card debt during the payment pause—now experts worry about 'shock'
Federal student loan payments are about to be due for the first time in three years. Many borrowers will be juggling new debt payments on top of their loans.
Isn't it great how we as a society sabotage a lot of our brightest minds by saddling them with predatory debt? This definitely won't cause any issues.
Don't forget pointing at them for the rest of their lives and condemning them for the crime of "making bad decisions" ie trying to better themselves and prepare themselves for a fulfilling vocation that either doesn't exist or pays poverty wages (teachers, paramedics, counselors, etc) in the US, all to drink in that sweet, sweet schadenfreude of the suffering of your fellow citizens.
The oligarchs used their bully pulpit of all major media that they own to train us to undermine one another, compete against one another, and root against one another so we'd never unite against our common enemy, them. This is merely the result of that, all the peasants blind after stabbing each other's eyes out, with the owners looking down at their livestock and laughing.
My family and I are fucked when student loans come back on. We have been frugal and reasonable but yeah, money can't just come out of no where... so we'll try to stay afloat by not going out or doing anything, but eventually we will sink and I imagine many others will too.
Unemployment office says they've been seeing more and more people with bachelor's applying... October is going to be a very rough month for our economy.
students get 50k in debt to make 1-1.5m more in their careers. It's an investment, how is that predatory?
I understand some practices are, and it's been spurred by the government releasing the flood gates of loans, letting 18 year olds rack up 200k in debt while encouraging universities to bloat the costs of college, but for the most part, getting a degree and going in debt is worth every penny.
If you actually click through the links, it's 53% have "added a credit product" where that credit product is a bank credit card. Says nothing about their debt increasing.
So, 53% of a bunch of 20-somethings opened at least one credit card in a 3 year span when almost all commerce went online and the retail stores that remained stopped accepting cash.
Maybe there's concerning data out there but this isn't it.
Gotta spin that narrative of irresponsible kids spending money recklessly tho
Yeah I struggled to find anything in the article or linked citations that debt was added, only cards. There was a bit about mortgages and loans but I don't know how that compares to normal YOY to know if it really means anything.
A very telling omission.
It’s not just 20-somethings. I’m 50 and still have $53k in student loan debt.
Didn’t credit start the Great Depression? Seems we need to rethink credit as a whole
Yes, thank you, end student loans. It's just bloated the whole system while taking advantage of young naive kids who are told by public schools that if they don't go to universities, they're failures.
Or at least teach teenagers how it works. Interest too. Oh, and while we’re at it, taxes.
Yes, but even more important, start teaching the social contract again, because the majority of Americans seem to take joy in the struggling and suffering of their own neighbors.
Abraham Lincoln said "a house divided cannot stand," and we got Americans scamming other Americans, laughing at them for it, and calling it rational self-interest instead of sociopathic greed.
How does pausing Student loan debt cause more credit card debt? Shouldn't it cause less because people have more money?
The first rule of financial literacy is to stay from credit card debt like the plague. Have we failed as a society to teach this?
When your life is already irrevocably fucked for listening to what you're told for 18 years and attempting to better yourself by pursuing a vocation you're passionate about, in a country that doesn't value the most important professions like teaching, you can eat saltines in a rented room and wait to die while your fellow Americans insult you for "making bad decisions," or you can buy a nice thing with a credit card and then continue to eat saltines in a rented room waiting to die while your fellow Americans insult you.
At least with the latter you have a nice thing to die with. Sure as shit won't get any "nice" from your fellow Americans who gain pleasure from your misery.
The first rule of financial literacy is
Not taught to most Americans, unfortunately.
I think it has more to do with why student loans were paused, the pandemic. Think of the number of people who lost their jobs and what the job market looks like now.
I wonder if a lot of the people who had their loan payments paused also lost their jobs or had to find less lucrative employment outside of their degree specialty due to the pandemic? That seems to me like a simple explanation for why their debt would increase
The article doesn't go into how much debt anyone took on nor if anyone factored in student loans before taking on more debt.
Should it, in theory yes. Did it, according to this article no.
No, no, no, no. You’ve got it all wrong. With the payments on pause, that meant they would never have to repay the loans. So, of course, that means go buy ALL the things.
There are probably plenty of people who got screwed by Covid, and had no choice but to pay for stuff with credit, but I’d guess a lot of people thought the pause meant it was gone.
Probably?
What is your fucking damage? Do you have the slightest inkling what it was like for parents for those two years? How about essential workers? How about you fucking redhats screaming about masks and vaccines?
You're telling me that instead of taking their excess cash from interest payment freezes and paying the principal of the loans, people spent it and spent even more and are still going to complain how they have student loans?
GQP anger so strong
Me thinking people should pay off loans they've taken out makes me a qanoner? I bought a car that had a loan...I paid it off.
That's how it works.
You calling anyone who doesn't blindly trust broad loan forgiveness just continues the divide in our country. Why do you just try to insult people that have different opinions than you?