Friday, March 1, 2013

Young people better at paying off debt

Do you have any debt? Have you been able to slowly pay it off or are you falling deeper into debt? A new report shows young adults are doing a better job at cutting debt than older people. But why?

Khalil Jamal is a student at UIS. Every so often he comes to an office at the university, to pay his bills.

"At first I didn't want to take out loans, but I felt it was necessary and a smart decision to do so in order to fill in some of the gaps that my grants and scholarships didn't cover," he said.

So many people have it debt. Student loans, credit card debt, or a mortgage, being in the red, is common. But who is doing a better job at paying the debt off, is a different story. According to a report by the Pew Research Center, young households, those 35 and younger, have generally reduced their indebtedness, while older households have increased it.

"The Credit Card Act of 2009, made it very difficult for younger adults to obtain credit," Alice Seaton, the manager of UIS' University Student Financial Services said. "In addition, parents today, of students, are taking on additional loans to help finance their student's education."

The story aired on WICS-TV 20 on February 28, 2013.

Watch the story online

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