Is the Younger Crowd Shunning Debt?
The share of younger households holding any kind of debt is also on the decline. In 2007, 84 percent of households headed by those under 35 held some kind of debt. However, this amount fell to 78 percent by 2010, the lowest level since the government began collecting such data in 1983. Older households with debt have only edged lower from 75 percent to 74 percent over the same period.
Even though younger households are deleveraging, they are not escaping the student loan bubble like other debts. The report explains, “Student debt was the only major type of debt to increase in prevalence among young households during the recession. In 2007, 34 percent of young households had outstanding student debt. By 2010, 40 percent of younger households had student debt.” On a positive note, the median amount owed by households with student debt fell from $14,102 to $13,410 during the period.