Highly educated folks most likely to pile on too much debt …

Recently released research suggests that despite generally held assumptions, it wasn’t just uneducated people, and not just homeowners, who precipitated the financial crisis by taking on too much debt.

Before the financial crash of 2008, it was highly educated Americans who were most likely to pile on unmanageable levels of debt.

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Overall, the percentage of Americans who were paying more than 40 percent of their income for debts like mortgages and credit card bills increased from about 17 percent in 1992 to 27 percent in 2008.

But college-educated people were more likely than those with high school or less education to be above this 40 percent threshold – considered to be a risky amount of debt for most households.

“People with college educations may have thought they were immune to any economic problems. But when people stop believing things might go bad, that’s when they get in trouble.”

Source

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One Response to “Highly educated folks most likely to pile on too much debt …”

  1. Chris Wargo Says:

    Not too surprising given our society’s need to keep up with the Jones’. It’s an even stronger urge among the affluent. Could you imagine having an MBA and *not* being rich?? You better spend like you are, or how will you ever earn the respect of your peers…

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