These days I find myself thinking that the most radical thing people can do is not buy things that will be obsolete before the credit card debt to buy them is paid off. If I want a camera or something like that I look on eBay and buy used.
One can get a used Volvo or Mercedes for less than a new econo car and have a really nice vehicle that will get a couple of hundred thousand miles if properly taken care of.
Screw debt. Debt lets corporations enslave us instead of paying us enough to buy things without going into debt.
But then when interest is the main product that the rich use to make money they need us to be in debt.
By Nin-Hai Tseng,
February 25, 2013
Adults under 35 have more student loan debt and less exposure to credit card, car, and home loans. That’s a troubling sign for the economy.
FORTUNE – Since the Great Recession, countless Americans have shunned the idea of taking on more debt. Homeowners discovered that stretching to buy bigger houses would result in years of financial turmoil. Jobless college grads unable to pay down their student loans now wonder if their degrees are really worth it. And as Europe grapples with its own debt problems, Washington lawmakers struggle to find a way to reduce the U.S. deficit.
Indeed, many have learned a few harsh lessons. But debt isn’t always a bad thing. More of it can reflect a healthy economy — one where consumers, as well as lenders feel comfortable taking on more risks.
Young adults, however, haven’t taken on nearly as much debt as their parents. It’s uncertain if the trend will continue as the economy improves, but for now, those under 35 years old have shed debt faster than older ones, according to a report by Pew Research Center released last week. The study doesn’t say if this is a good or bad development, but many signs suggest the drop means Millenials are more anxious than responsible about their finances.
Continue reading at: http://finance.fortune.cnn.com/2013/02/25/debt-young-adults/?iid=HP_LN