http://www.wsj.com/articles/u-s-household-debt-rises-slightly-in-to-11-83-trillion-1424188820
Debt formation can be a good sign. It generally signals that people are confident enough in the future to leverage themselves. However, with student debt levels (and default levels) growing, is this debt growth healthy? Let me know what you think about the study.
5 comments:
Debt can be a good sign if the debt is leverage for investment. But in general i dont think it's good to have high debt especially for the government. I think American depends to much on loans especially it's so easy to do so with credit cards. When everything can be bought with loans, before they know it, they are drown with huge debt that take a life time to pay off. People need to be more educated on the finance subject
In my opinion, immense student debt is not healthy debt. While it shows that there is a high value placed on secondary education, it hinders and supresses graduates in terms of spending ability and housing.
The current interest rates are really very low so it is not surprising that people are saving less and are taking more loans, or using their credit cards frequently.
I definitely agree that huge student loan debt is not good students, but at the same time, a college degree is really needed to get a job, so whether we want it or not, it is realistically impossible not having student loan debt.
I agree with Emily. The amount of student debt that is accruing is not good. Yes, some debt is good to have because you can use it as leverage but student debt is a different story. I think it is good that education is a priority to Americans but I also think something needs to be done in order to stop this debt from continuing to grow.
Growing student debt is not a great thing for our economy. Students graduating with this debt usually find themselves in entry level jobs making insignificant wages to make real dents in their debt payments. I believe the government could do a better job offering educational subsidies to the greater public and I believe that this is happening.
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