Student Loan Debt Limiting Home Buying

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Student Loan Debt Limiting Home BuyingIn a recent article by Chris Rugaber of the associated press, he talks about how young fresh out of college Americans are making forceful efforts to keep up with steady increasing student loan debts loads. This burden is slowly yet swiftly restricting their capability to buy a new home.

 

The big boys at the Federal Reserve Bank of NYC reported overdue student loans went up like nearly 12% in the final quarter of 2014, that is a new high.

The ankle bone is connected to the foot bone, what I mean here is that a cause creates an effect, with American youngsters dealing with student loans (and sometimes without the ability to find a good job), they are not going to take out a mortgage unless they are just plumb crazy.

 

I mean, if you can’t pay your one debt back, how or why would you create another debt?

 

According to the New York Fed, that is a reversal from the pre-recession pattern. Well, what does this have to do with home buying again?

Well, if you are delinquent in payments of your student loan, you are hurting your credit, and thus won’t be able to get a loan to buy a house. Therefore Charlie, you’ll be forced to stay in your mamas basement, or rent that campus apartment until you’re 45!

 

Student Loan Debt Limiting Home Buying

 

The student loan debt is not the only debt that is crippling the American young adult population, the young big eyed kids are grappling with car loans. While other debts are alright, the student loan debt, which is the only one that can’t be forgiven or disappear in bankruptcy is the one that has the most delinquencies.

 

That’s probably because some of these student loan debts have lower interest rates than their car or credit cards, so they pay the higher interest rates first. The reality is they should pay the unforgivable debt off first.

 

student loan debt limitingThe FEDS are concerned about the car loans also, as they have a 3.5% rate of being 3 months overdue. That is an increase after four years of smooth declines. I personally can’t imagine being 3 months behind in anything, but this is what’s going on.

 

Student loan debt is limiting home buying because it is hurting the credit of young Americans, and they are losing confidence in buying. With youngsters not buying homes, this creates another effect somewhere else, the Federal Reserves know where, and this is why this is news.

 

Youngsters, I recommend having a side hustle or create a full business from scratch. Something you are good at or enjoy doing that will create real income for you, just as a good safety net. Regardless of what kind of business you start, you’re going to need to learn how to market your business.

 

If you have no business ideas, you can pick up plenty of ways to make money online at home by just doing the research. The guys at Wealthy Affiliate can really help with that.

 

So, What do you think about student loan debt limiting home purchases?

 

Leave your comment below.

 

Komodo Nelson

@komodonelson

 

Christopher Rugaber’s article

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