Many young consumers are now facing severe financial difficulties including sky-high credit card debt and outstanding student loan payments as a result of the troubled economy that recently gripped the nation.
Prolonged mismanagement of credit cards and student loans have led many consumers in their 20s and 30s into deep financial quagmires at a time when many in that age group have historically been building their wealth, according to a report from the Arizona Republic. The stingy job market – which made it difficult for consumers of all ages, and particularly those with little experience, to find employment – has only exacerbated problems.
Some experts posit that some of these financial problems come from a lack of strong borrowing practices, which may not have been learned from parents or teachers, the report said. This could be because children see their parents buy things on their credit cards during shopping trips, but rarely see them also paying the resultant bills.
As a consequence of these financial problems, many young adults are now spending most of their formative years of financial independence paying down thousands of dollars worth of credit card debt.