Yesterday on the front page of USA today, a report about how this generation is becoming known as the Debt Generation because of the excessive amounts of debt that are taken on.
I believe that part of it is a social acceptance of immature need for instant gratification. In the dorms everyone wants to have the “Best Stuff” so they will charge up there credit cards to by home theater systems and flat screen plasma TV’s, yet they don’t have the cash to go out to McDonalds.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.
What are your thoughts about this increasing problem. How much debt is too much debt? If you are in this age group, do you have a lot of debt? How can society change to prevent further debt issues? If you are older, were you in debt at this age? How did you, or did you get out of debt?