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Research Reveals Young People Feel Good Having Debt

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  • Research Reveals Young People Feel Good Having Debt

    New research says that young people feel pretty good about having debt. In fact, for young young adults—ages 18 to 27—debt enhances self-esteem. And that includes both college loans and credit card debt.

    Behavioral economics is a burgeoning field, and research into our relationship with debt is pretty new, and particularly relevant in our debt-burdened age. And this debt lovefest seems to be a new phenomenon...

    Debt As A Rite of Passage | Real World Research

  • #2
    Interesting article. Not really surprising but it is something we don't often hear about. Debt makes people feel grown up. That is unfortunate, but I can see where people might think that. When you are young, you are only able to buy what you have the cash for. Debt isn't an option. That's why many teens (whose parents don't pay their way) drive a beater for their first car. That's all they can afford and they don't qualify for a loan. So actually being able to apply for and be given a loan is a sign of adulthood.

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.


    • #3
      Thinking back, my first real major debt purchase was for a nearly new 1990 Ford Ranger pickup truck. I took out a five year loan at whatever the rate was then. I guess I did feel kinda' good about having a new looking vehicle as I drove to work each day. I remember the praise from other workers and a generally good feeling about it despite all those payments. I certainly had a different view of things then.

      I do get the gist of the article when I think of that purchase(I was 25 at the time). Maybe it's all a part of the financial learning curve that some eventually understand and others never do.
      "Those who can't remember the past are condemmed to repeat it".- George Santayana.