Young adults have less debt according to Pew research study
Young adults have less debt according to a recent Pew Research Study.
But is it because they're not buying anything?
The study released today shows that young adults under the age of 35 have less debt. The main reason is mainly because they own fewer assets such as cars and houses.
Young adults today say they're avoiding those major purchases after watching their parents struggle.
"I feel that our parents’ generation are in debit, and personally, the reason why I don't have debt is because I've seen my parents struggle with it my whole life," said 27 year old, Owland Mackey.
Mackey says he's thankful he learned to avoid debt at an early age.
And experts say he's not the only one.
Financial West Group Investment Adviser, Ford Keeler said, "I think they have seen what their parents and older folks have gone through with crises in their financial situation, and in large part young adults want to avoid that, and if they can, having a few less toys and assets I think they're willing to forego some of those things."
Mackey says his biggest asset, which he bought before the recession helps him avoid piling up bills.
"I was able to have an opportunity to purchase a house when I was young. It's really helped me out to be able to rent it, really one of the best choices I've made," explained Mackey.
Despite his purchase, a recent Pew Research Study shows younger households with any kind of debt dropped to 78% - the lowest level in 30 years.
Mackey says unlike him, his friends don't have any assets.
"It's kind of a fine balance, I think having assets having things that will spur on our local economy is one thing, but gaining the debt to obtain those items without a doubt is a negative," said Keeler.
The study shows the number of young adults with credit card debt is dropping as well.
And experts say that may be because it's harder for young people to get credit in the first place.
"I think banks have stiffened their lending requirements to a large extent, I think particularly young folks who don't have an established credit history, banks aren't as willing or able to lend money as they once were," said Keeler.
Still Mackey thinks as a young person you have to make a choice to stay out of debt.
"It's all about spending the money that you have. A lot of people with without their means, they max out their credit cards. And I just base my expenses on how much I make," explained Mackey.
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