Comments on: Young People Are In Financial Trouble

By: Brian

Brian — Mon, 08 Sep 2008 19:58:58 +0000

Well college debt i can see being a problem of not telling people what they are getting into. But Credit Card debt is not excusable. If you do not have the money do not buy it, that is that oldest rule in the book. Any child who had an allowance understands that principle. Charging and charging on the credit card knowing you do not have the funds is just being stupid wanting the world with no salary to do it.

By: Jason Simon

Jason Simon — Fri, 05 Sep 2008 19:09:39 +0000

This report doesn’t surprise me either. Credit card debt is going to hit 1 trillion sooner than later. I’m thinking about going cash only. Anyone else?

By: Dave

Dave — Fri, 22 Aug 2008 23:24:24 +0000

Mark Twain said history doesn’t repeat itself…but it rhymes. Is the young generation of the mid-2000s in any better shape than the younger generation in the mid-1930s when the US was in the depths of 25 percent unemployment? That generation grew up to be frugal and set the stage for the rise of the Baby Boomers. Perhaps this generation will do the same.

By: Kaitlyn

Kaitlyn — Fri, 22 Aug 2008 14:40:42 +0000

I was caught in the same trap as Angie. “Don’t worry about the loan amounts! You’ll make plenty after college to more than pay for it.” Lies! 60K in debt later, I can make all my payments – barely, and with a lot of overtime at work.

By: Angie

Angie — Fri, 22 Aug 2008 12:04:19 +0000

A sidenote to add:
When going off to college I could sign for $20k/year private student loan (along with federal loans) yet, which would take 30 years of standard payments to pay off.

Yet by law I couldn’t:
1. As a cashier, sell alcohol to people of age.
2. Drive after 9pm.
3. Drink alcohol responsibly.

If you aren’t trusted by law to do the above simple things, then how to they trust that you know the magnitude of what you are signing with student loans? I can’t be trusted to understand how to responsibly drink a beer but I can be trusted with $20,000.

By: Angie

Angie — Fri, 22 Aug 2008 11:54:43 +0000

It doesn’t help that there is no formalized education on finances whatsoever before or even in college. I’m pretty sure that if someone had explained to me the magnitude of the loans I was taking out for school that I would have done something different. Either work more hours part time or probably choose a different school completely. When choosing colleges most career conselers will just say “Choose the school you want to go to. Cost shouldn’t be a factor.” I lived by that and now I left school with over 100k in loans. Luckily I landed a good enough job to afford the payments and add some extra. But I will still be paying about 1/3rd of my salary until I am 40 (and that is with early payoff!).

Shouldn’t there be any required finance conseling when I am signing student loan documents for $20k a year at the age of 17?

By: Richard @ Student Scrooge

Richard @ Student Scrooge — Wed, 20 Aug 2008 20:06:32 +0000

Yikes, indeed — those credit debt statistics are frightening, and are not easy to take care of once you fall down that path. I think the worst part is how many young people learn personal finance “on the fly” — its hard enough for those that do know what they’re doing, but for the vast majority of people…. Yikes.