It's becoming a norm to fall into debt, especially during the college years, and people are still paying for it after graduating. Students would have to pull out loans to pay for school or the debt would accumulate through other spending.
According to a Wall Street Daily article, student loans had risen by 64 percent due to school tuition, and right behind student loans are credit cards and auto loans.
Study taken from wallstreetdaily.com
During the day and early evenings in November, I asked people if they were in debt, why they were in debt and what they spent their money on.
“I spent all of my money growing up because of the lifestyle that I wanted,” said Kyle Pierce, 28, of San Francisco on Thursday. “Instead of maintaining that lifestyle, I maintained the debt that came along with it throughout college and even today.”
“I spent all of my money growing up because of the lifestyle that I wanted,” said Kyle Pierce, 28, of San Francisco on Thursday. “Instead of maintaining that lifestyle, I maintained the debt that came along with it throughout college and even today.”
picture taken from Gamespot Forum
“A lot of purchases on credit cards should be avoided by unnecessary wants,” stated eCampusTours, and one way students spend too much money is by eating out excessively. Now I know what you're thinking... "But I need to eat," which is true, but do we really need that pizooki from BJ's Brewhouse or that $8 fruity drink that quenched our thirst the moment we saw it on the menu. Did we forget that water is free?
“I eat everywhere, more than I should,” said Jon Erick Bunao, 26, from San Jose on Wednesday. He has a significant other, and as a gentleman, pays for all the meals for the both of them. What a lady's man, but I'm sure his wallet must hate him.
picture taken from fanpop dbz
The luxury of eating
out is rewarding for college students, but also the materialistic items can
also take a toll on their debt. A student talks about how all of his money went
to designer clothing and accessories he uses now.
“I purchased designer clothes and accessories because I wanted to live the lifestyle like a baller,” said Kevin Le, 21, third year biology major at De Anza College on Sunday. “I regret maxing out my credit card on these purchases.”
picture taken from Twitter user chilemasgrande
According to a Forbes article, “students graduate with an average of $4,100 in credit card debt, not including interest rates.” They advise students avoid applying for credit cards so that they won’t spend money that they don’t have on things they don’t need. If these practices continually occur, the debt balance for student loans and credit card debt will only grow larger.
While many people have regrets about buying on impulse, some look at their impulse purchases optimistically. I talked to an in-law who just had his first baby and talks about that even though he's in a hole right now, he looks at it as an investment for the future.
“Even though I have student loans to pay off and had some bad purchases, I know I can make the funds back easily,” said Logan Aiello, 27, from San Jose on Thursday. “I know this debt will help further my family’s future once I pay it off.”
Student loans and debt are serious topics. Before we even think about buying that new MacBook Pro or a new 70 inch television, we should prioritize our money based on importance, not by unnecessary desires that can drop down in value over time. If this debt isn't paid off of, then it'll be worse when interest rates come in. I guess we shouldn't have had that pizooki earlier...
picture taken from lawyers.com
