The Positive and Negative Sides of Debt

Most of us have heard the old adage of determining whether or not your cup is half full or half empty. Supposedly, if you view your cup as half full, you have an optimistic personality, but if you view the cup as half empty, you have a pessimistic personality. Just like our personalities, debt can also be viewed as positive or negative.

According to news sources, a recent survey was done by Ohio State University staff on young adults concerning credit card and student loan debt. The study revealed young adults between 18 to 27 years of age did not feel particularly stressed if they had high levels of credit card and student loan debt. 

Many felt like debt, especially student loan debt, may be viewed as an investment in their futures. The findings were particularly prevalent among those in the lowest economic class. In addition, the study revealed it was not until young adults reached between 28 to 34 years of age they began to feel stressed about the money they owed. 

From the study, the staff learned there are two sides of debt which could have either positive or negative outcomes for the young debtors. The positive side of debt for the young adults was the investment they were willing to make in their future careers in the form of student loans. 

Surprisingly, the younger group also got positive vibes from going into debt through credit cards. They felt empowered to buy not only the things they need like cars, clothes, and food, but also more luxurious items. Buying these items and making payments for them gave the group a sense of mastery and higher self-esteem. 

Debt may make younger people feel better about themselves, especially if they are able to handle the financial commitment associated with it, but what happens when the negative side of debt arises? The study found that by the time the young adults reached 28 years of age many had overestimated how much they were going to earn in their jobs. 

Hope reigns eternal for the young but reality often sets in when you realize the bills have to be paid. The question then is whether or not the debtor will be able to earn his or her current salary. One of the greatest causes for bankruptcy is loss of income. With the prevalence of outsourcing, a loss of a job can be devastating to younger workers. 

Many of the young workers, who have high debt and have to replace a job, now understand the concept of underemployment. The temporary job they took for less money may become permanent, and the bills may be impossible to pay. 

You can claim your cup is half full, and I will agree that is a great attitude for survival, but the truth is if you don’t have the income to pay your bills, they will pile up. 

Bankruptcy laws can be complicated. If you are considering filing for bankruptcy, contact a bankruptcy lawyer. If you need relief from the stress of debt and you live in or around the metropolitan area of Omaha, Nebraska, or Iowa, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

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