Saturday, February 23, 2013

Young Americans erasing debt fast, study says


	In this Wednesday, Dec. 5, 2012, photo, Honda Pilots are seen outside of a Honda car dealership in Des Plaines, Ill. The U.S. auto industry ended 2012 on a high note, with December sales the strongest they have been since before the recession. Analysts predict an even bigger year in 2013, as a stronger economy, low-interest rates, aging cars on the road and competitive new products continue to draw buyers to dealerships.?

Nam Y. Huh/AP

Household debt for homes headed by people under the age of 35 plummeted by 29% from 2007 to 2010. One big reason is the millennials are getting by without buying houses and cars, a report by the Pew Research Center found.?

The millennial generation seems to have figured out the formula to avoiding racking up debt: buy less stuff.

The median debt of American households headed by young adults has plummeted over the course of the great recession, a new study by the Pew Research Center has found.

In all, debt in households headed by people under the age of 35 fell by a whopping 29% between 2007 and 2010, the study said.

RELATED: MONEY PROS: TAKE THIS QUIZ TO SEE IF YOU HAVE TOO MUCH DEBT

By comparison, households headed by adults over the age of 35, debt fell by just 8%.

More good news for millennials was found in an analysis of their credit card debt. While 48% of adults over the age of 35 carried a credit card balance in 2007, just 39% did in 2010.

According to Pew, the sudden frugal streak was best illustrated in two main areas where Americans have routinely found themselves piling on debt: homes and cars.

RELATED: DELAYED INSURANCE CHECKS FOR SANDY VICTIMS COULD SLOW RECOVERY

The share of younger households owning their primary residence fell sharply from 40% in 2007 to 34% in 2011, the study stated.

Whether they couldn?t afford to buy one, or identified automobiles as another source of debt, just 66% of millennial households owned a car in 2011, down seven percentage points from 2007.

While remaining more or less flat for American households lead by adults over the age of 35, the big drops in the percentage of debt for millennials may signify a cultural sea change.

?These shifts in the debt profile of younger adults reflect a broader societal shift toward delayed marriage and household formation that has been under way for decades,? the Pew report stated.

Though student loan debt has continued to edge up over the past 12 years, a record high 22% of younger households reported having no debt whatsoever, which Pew noted was the largest number since the federal government began gathering the data in 1983. ?

Source: http://feedproxy.google.com/~r/nydnrss/life-style/~3/klppOB9BH3Y/story01.htm

the glass castle jennifer hudson trial north korea threat brandon jacobs brandon jacobs brian dawkins emma roberts

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.