Skip to comments.Why Many Young Americans May Die with Debt
Posted on 01/14/2013 8:47:41 PM PST by SeekAndFind
Younger Americans can expect to die with credit-card debt if their current spending patterns continue, a new study finds.
Co-authored by Ohio State University economics professor Lucia Dunn, the research suggests that younger generations may continue to add credit-card debt well into their 70s, and die still owing money on their cards.
"If what we found continues to hold true, we may have more elderly people with substantial financial problems in the future," Dunn said. "Our projections are that the typical credit-card holder among younger Americans who keeps a balance will die still in debt to credit-card companies."
The study found that consumers born between 1980 and 1984 have credit-card debt substantially higher than the debt held by the previous two generations. Specifically, they have on average $5,689 more debt than people, like their parents, born 1950 and 1954 at the same stage of life and $8,156 more debt than those born between 1920 and 1924, like their grandparents.
The data in the study comes from two large monthly surveys, the Ohio Economic Survey, which was conducted from 1996 to 2002, and the national-level Consumer Finance Monthly, which began in 2005 and is ongoing. The researchers combined the data to examine 32,542 consumers between the ages of 18 and 85 for the years from 1997 to 2009.
When the researchers analyzed data from the entire set of respondents at any one point in time, they found that credit-card debt increases at younger ages, peaks at middle ages and then tapers off at older ages.
In addition to incurring more debt, younger people are paying off their debt more slowly, too. The study estimates that the children's payoff rate is 24 percentage points lower than their parents' and about 77 percentage points lower than their grandparents' rate.
(Excerpt) Read more at livescience.com ...
They keep the economy moving by spending money they don’t have.
They create all those iphone/Ipad jobs.
Starting with their student loans for useless degrees....
Thinking that only the best (and most expensive) schools are the way to the future.
If they are in their 70’s they are no longer young.
As the new older set uses these cards more and more, it seems inevitable that the Grim Reaper will catch them with balances owed and fixed incomes stopped. And so what: it’s up to the card companies if they want to support such risks. It’s not as if actuaries are going to be caught by utter surprise.
i don’t care if i die in debt. no money to the effing government. nobody else responsible for my debt.
That is called winning.
Our goal is to get our kids through school debt free, and to encourage them to stay out of debt from then on.
So far, so good.
banks will come up with a way to prevent this — most likely they’ll have a clause that they grab all your money by the time you are 65 if you haven’t paid your credit card bills
Well, these “researchers” and “experts” have finally come to realize that Americans rarely ask “how much does it cost,” they only ask “how much per month” is it?
We have certainly been conditioned by the financial masters to freely and gladly become financial slaves by eating the financial “cheese” that’s thrown out with easy credit.
Young Americans have already found a solution: they have stopped breeding. They were told to live within their means, so they’ve stopped what they view as the most disastrous financial decisions a young adult can make: having a family and buying a home for it.
Now we import foreigners to keep our classrooms (including college classrooms) full and housing occupied.
Unless you leave an estate.
The final push into Socialism will come when this generation turns to a debt strike and anti-banker rebellion. Mark my words.
The government has put the People in the unenviable position of working off of over-extended credit cards with minimum payments extending the loans and the interest into oblivion.