https://www.nytimes.com/2017/05/17/business/dealbook/household-debt-united-states.html?ref=economy
On Wednesday, the Federal Reserve Bank of New York said that the national household debt has reached a new low of $12.7 trillion. According to the article, “The growing debt level shows that many of the millions of Americans who struggled during the recession have repaired their credit to qualify for loans. It also suggests a rising optimism about economic growth among banks and other lenders.” One of the major causes for household debt has been student loans, which is definitely a blockade in preventing Americans from buying homes or expensive consumer items. In addition, debt from auto and credit card loans could play a significant part in increasing the national debt and put the U.S. back into a state of a “mortgage meltdown” just like ten years ago.
If the increase continues, how do you think this will affect our economy?
Do you think there are ways of decreasing household debt?
If you do believe so, then provide some examples. If not, explain why.
I think debt starts with student loans, so if we can refinance college and make it more affordable for everyone then it would greatly decrease debt and if someone can get out of student loan quicker than they are lease likely to gain more debt. A way to decrease household debt would make it easier for people to get loans and also with student loans.
ReplyDeleteI agree with Emily making college more affordable for everyone and cheaper will greatly help decrease student loans and would also decrease household debt to make it easier for people to get loans
ReplyDeleteI also agree with Fita and Emily. I strongly believe that debt starts with student loans. If college was more affordable I think more students would be in school and definitely be more prosperous in the years after.
ReplyDeleteI agree with Daedules here in that debt is bad. You see as a future government planner we need to reduce the atrocity of debt in order for the kids to have positive net worth and use that money so we can fix those damn pot holes in our roads
ReplyDeleteI agree with everyone and believe that making college more affordable would be a start in helping decrease our debt.
ReplyDeletewell student loans do begin a debt, it college was affordable then no as many college students would be in debt.
ReplyDeleteI think that because education is so expensive people get into debt also medical bills. if the debt keeps going up our economy will be ruined.
ReplyDeleteThe cost of higher education (college, etc.) increases every year which is why more and more families keep on taking out loans. Even with financial aid, many students leave college full of debt which just keeps on piling debt up on families.
ReplyDeleteI also think that if college was cheaper it would definitely decrease a big part of the household debt
ReplyDeleteI agree with everybody that decreasing college tuition and cost of attendance would help people be able to buy homes because they would be free of student loans and would have a better credit score.
ReplyDeletedebt has become a fact of life. this is somewhat of a stagflation. home and education prices have gone up and up while income has remained roughly the same. only the kids born into wealth can avoid crippling debt
ReplyDeleteBeginning with the rising costs of college people start taking out massive loans when they are young and these loans only grow if the students cant keep up with the interest. this will only hurt the economy.
ReplyDeleteDebt is going to start as soon as student loans are available, so if we make colleges more affordable for people to continue their education, then that would end up benefiting the society.
ReplyDeleteI believe that if we make college more affordable that student loans wouldn't be needed as much. This would help decrease debt within the students.
ReplyDeleteThere's a perfectly viable solution to the issue of rising household debt as a result of student loans: lower the cost of tuition at colleges and universities. These institutions claim to offer need-based financial aid, but those middle-class households who don't qualify for need-based financial aid are nonetheless challenged by the costs upwards of $50,000 per year.
ReplyDeleteI also believe that college tuition should be lowered. In addition, schools should offer more generous scholarships to more applicants.
ReplyDeleteI agree with Emily. I believe that student loans are a big issue when it comes to debt. In todays world, it is difficult to find a well paying job without going to college, so it is wrong to tell someone that they have to go to school in order to be successful, but at the same time start them off way behind due to the debt they are in.
ReplyDeleteIf we think about it, the people that were effected by the recession have recovered to get loans, that means they now have money from the loans. That means more money with more people. Which might not be a bad thing. But aside from that, I agree with emily. One major player in the decreasing money due to loans would be student loans which are loans that aren't being spent in the economy, it's just going to the school. So student loans are what are the major problem is. So let's make college more affordable? I think yes.
ReplyDeleteI agree that making it so kids can go to college at an affordable price would be helping reduce our debt problem
ReplyDeleteI agree that we should make college more affordable to help with the debt that we have in country.
ReplyDeleteI think that if the national household debt continues to increase, that it will only make us look bad and anger other countries. The fact that we have borrowed 12.7 trillion dollars that we can not pay back, makes the country look very immature.
ReplyDeleteLiving in California is already so expensive, I do believe that college tuition and just living expenses would really help Californians. By making college more affordable, then the national debt would decrease dramatically.
ReplyDeleteIf the main source of household debt is student debt than the way to decrease household debt is to make college cheaper.
ReplyDeleteIF the economy keeps increasing it will increase the chance it will crash and have a large impact on the economy. On average every ten years the economy crashes or goes down and we are above average and due for a crash.
ReplyDeletecollege should be affordable so then the national debt decreases
ReplyDeleteYes I agree that the college should be more affordable adnthat debt start with loans. Because in order for them to actually go to school they need those lons so theyre in debt before tey actually have a jon
ReplyDeleteThe cause of debt is definitely the student loans. Luke Julianna said, colleges need to lower their tuition prices because people have to take out an absurd amount of loans in order to just get an education. Not only that but we need to also make sure that people learn from a young age about saving money and when it is the right time to take out loans so that they aren't falling into debt.
ReplyDeleteIf college was more affordable then the national debt would be an issue we wouldn't have to worry about so much.
ReplyDelete