Everybody's talking about the sub-prime lending/mortgage crisis, but nobody's talking about the (literally) poor, heavily indebted recent college grads. Below is a snapshot of what I'm dubbing the " Gen Y(uppie)" financial meltdown. It doesn't paint a rosy picture.
At least now I won't feel too badly the next time I'm out paying $15 a drink on Martini Mondays or Tapas Tuesdays at my favorite ultra-chic and oh-so cosmopolitan bar/lounge. Every other 20-something in the building is telling themselves they shouldn't be spending money, too.
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Per USAToday:
- Nearly two-third of twenty-somethings carry debt.
- Nearly half have stopped paying a debt forcing their loans into default.
- Total debt is up 10% - an average of $16,120 as compared with five years earlier.
- Student loan balances rose 16% in 2007 to an average of $14,379.
- Debt has forced some young people to change their career plans. Of those surveyed by USATODAY, 22% say they've taken a job they otherwise wouldn't have because they needed more money to pay off student debt.
- 29% have put off pursuing post-baccalaureate education because they already have too much debt. 26% have put off buying a home. 11% have put off marrying and 14% have put off having children.
- 19% have moved back home to live with their parents to put off costs.
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9 comments:
Omg it's like you're writting about me. Truth be told, I have really been feeling the urge to go back to school lately. But I can't even pay for undergrad. I can't see myself going back to incur more debt. **sigh**
"At least now I won't feel too badly the next time I'm out paying $15 a drink on Martini Mondays or Tapas Tuesdays at my favorite ultra-chic and oh-so cosmopolitan bar/lounge. Every other 20-something in the building is telling themselves they shouldn't be spending money, too."
Better to be in your early 20's with debt than in your 30's and up.
I forgot to add that I love that comment I quoted.
Yep, my 20s will be over in less than a month. I'll use my early 30s to pay off all my debt and go back to school. And my late 30s to get comfortable. And my 40s to live comfortably!
Well, that report makes you want sip on bleach.
I know I fit into more than one of those statistics!
I definitely fit into some of these stats. But, what's interesting is that this is happening because people didn't live "the Black Experience." Merely my opinion, but, the reason I think I have a great job and a decent experience portfolio that's considered competitive is because I was forced to drop out of college initially because I simply had no support. That forced me to get a job early on and work the entry level positions. I've been blessed to go back to school and finish - and now I'm working on a MBA. I think had I done it the other way where I went straight to college w/no education - I'd fit ALL of those statistics.
Honestly though, I think the culture has changed drammatically and traditionalists still see the experiences as such that you go to high school, graduate, go to college, graduate, intern, and then by the time you're 35 or so you're making 60-70K. I always mentor teens and let them know - that delays your life tremendously. I think if more people found a way to do college and gain valuable experience simultaneously - by the time 30 comes, they'd be way better off.
Sorry for the rant though - lol.
Everyone's path is different. Although education is a key to success, it is NOT the only key to use.
damn the Captain was on point with that one.
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