Swallowed. Overwhelmed. Buried.
These are the words we usually use to describe our relationship with debt. Worries over student debt are no laughing matter, but there is a bright side. A Pew Research Center report finds that young people actually have less overall debt than their parents’ generation.
This study considered a young adult to be anyone born after 1975, otherwise known as 35 and younger. Both older and younger generations experienced the economic crash of the dot-com bubble in the 2000s and the Great Recession that started around 2007. The only difference? The young adults handled it a lot better.
Between 2007 and 2010, young people shrunk their overall debt by 29%.
Young adults accomplished this by changing some of their basic spending habits. They bought less cars and houses, delayed marriage, and started earning more while spending less with credit cards. You might be saying, but didn’t more and more students start taking on student loan debt? Yes, absolutely. However, the median amount owed households with student debt actually decreased from 2007 to 2010.