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The 100% chart is quite deceptive. Student loans take a larger share of the debt. Is that because increased tuition fees (probably), is that because more young
by nomercy400 9y ago
The 100% chart is quite deceptive. Student loans take a larger share of the debt. Is that because increased tuition fees (probably), is that because more young people have become students (ie. higher education available to more people), is it because young graduates won't buy a house and still live with their parents (and thus stay in the Student Loans category instead of moving to the Mortage category) and opt for a car instead (thus moving part to the Auto Loans category)? Is it because houses (and thus underlying loans) are cheaper?
Basically all this 100% chart says is that people are taking out less of a loan for a house.
- danesparza 9y agoI would disagree with your last statement. The chart is ambiguous (which is just poor reporting on the part of NYTimes). It's unclear if auto loans have grown, student loans have grown, the average home loan has shrunk (or just gotten paid down since 2008), or if there is another effect in play. The 'percentage share of consumer debt' each item is isn't a useful fact on it's own.