Any kind of debt can get out of control and wreak havoc on an individual’s finances. One area in particular is predicted to cause issues for college students in the near future in Florida and elsewhere. That issue is student loan debt. It is predicted that, as far as unsecured debt is concerned, student loan debt may soon pose a deeper problem than credit card debt.
According to analysts, there are more than 43 million Americans currently in the process of paying back student debt of some kind. It is also reported that roughly one in four of those student loan borrowers is either in default or delinquent in that debt. While there are loan forgiveness programs in place, many are not getting to the root of the problem.
Others note the ripple effect of this debt situation and predict that it could be the next looming financial crisis. Those who are struggling with student loan debt may be turning to credit cards to make ends meet. This may indicate difficulty across the board with handling debt of any kind, and this kind of lifestyle does not add to the economy at all either.
Many borrowers learned the downfall of too much credit debt when the recession hit a few years ago. This may have taught many a lesson in how to effectively deal with debt. However, if student loan debt surpasses credit card debt as the biggest unsecured debt problem in the country, the effects can impact all borrowers. For those in Florida who are increasingly struggling or not in complete control of their unsecured debt situation, other options such as bankruptcy may be viable options compared to default.
Source: wivb.com, “U.S. student loan debt overtakes credit card debt“, Mark Belcher, April 3, 2015