Should debt be limited? Can young people avoid going into debt with more regulations?
Some estimates show that a quarter of people between the ages of 18 and 34 have at least $30,000 in debt. Approximately one out of every 10 owes over $100,000. This may include all kinds of debt, such as student loans, credit card debt, car loans and more. These statistics show that younger people often find themselves saddled with significant debt at an early age.
There are downsides to carrying this debt, such as having to wait to buy a home or putting off having a family until you become more financially stable. So-called “good” debts, like expensive degrees or real estate purchases, may pay for themselves. Other debts may be holding you back, making it difficult to get on with your life.
Should debt be limited for the sake of young people’s futures?
Someone could easily argue that many young people don’t understand how much their choice to take on debt will affect them in the future. Someone who is 18 or 19 may not realize that their school debt could take a decade or longer to repay.
Right now, the government doesn’t limit how much debt a person can have, but there are restrictions in other ways. For example, if a teen has no credit score, obtaining credit will be difficult. Someone with a low score from missing payments will have trouble with accessing credit as well.
Restricting debt isn’t necessarily the issue. Instead, educating people on debt and their options if it becomes overwhelming is key. For example, bankruptcy is there to help if you get in too deep and need a helping hand. It could be an excellent way to get a fresh start.
Our website has more on debt and what you should do if you are struggling with it. You may want to apprise yourself of the many debt relief options that exist.