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    Millennials Burdened With $1 Trillion In Debt, Student Loan Contributing To Limiting The Pace Of Economic Growth

    Student Loan Grown 102% Since 2009

    It’s been over a decade since the youth of America faced debt level this high. According to the New York Federal Reserve Consumer Credit Panel, the debt among the 19 to 29-year-old Americans surpassed $1 trillion by the end of 2018 which is the highest exposure since late 2007.

    Adults of this age group exceeded the $1 trillion debt threshold in the last quarter. Student loans make up the majority of this 1,005,000,000,000 debt owed by this group. Student Loan is followed by mortgage debt where new mortgages among the young adults is a bit below the levels of the early 2000s. This suggests adults are waiting longer to buy homes and are opting to rent for a longer period.

    The mortgage originations from pre-recession was about twice today’s levels. Though mortgage debt makes up the majority of the entire consumer debt, it is not growing as fast as student loan as evident from the fact that while mortgage debt increased 3.2 percent, student debt grew 102 percent, since 2009.

    After mortgage loan, student loans are the second largest consumer debt segment and exceeds credit card balances, auto loans, and home equity revolving debt.

    Americans tend to accumulate the peak of their debt during the mid-life years while debt should be declining as an individual age. Another striking piece of data is that the implied data which is over 90 days delinquent for student loans looms over any other loan type.

    Muted Spending by Baby-Boomers Generation

    According to the survey conducted by the University of Michigan, the buying attitude of young adults, aged between 18-34, is decreasing in a house, vehicles, and durable category. This reduction in spending is the result of weakened job and income prospects, delayed marriage, and, the burden of educational debt.

    Director Richard Curtin says Great Recession has made the baby-boomer generation more cautious about taking financial risks and incurring debt. It has also been noted that muted spending has limited the pace of economic growth.

    “This recognition of the importance of spending by young consumers has prompted an array of policies to boost their spending such as forgiving student debt and many other proposals now debated in the political arena.”

    Meanwhile, Millennials Preferring Crypto Over Stocks

    Recently, eToro, a social trading platform that deals in cryptos, commodities, stocks, and ETFs revealed the findings of the market survey that shows heavy interest from over 71 percent millennials in crypto assets.

    Guy Hirsch, the managing director of eToro US said,

    “We’re seeing the beginning of a generational shift in trust from traditional stock exchanges to crypto exchanges.” The immutability of the blockchain is driving the millennials’ interest and “as more investors become educated on the benefits of blockchain we’ll continue to see this trend play out.”

    “While there is clearly a demand for crypto assets in 401k portfolios, there are a number of regulatory and market changes that need to occur before it becomes a mainstream offering.”

    Crypto Price Analysis Watch: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and BCH Predictions (Feb 26)

     

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    AnTy
    AnTy
    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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