UNC1334

I beg to differ - more folks are defaulting these days on auto loans. Article came out this week -

https://www.bloomberg.com/news/artic...ts-are-soaring

UNC1334

Eh, you sure about that?

https://www.bloomberg.com/news/artic...ts-are-soaring

UNC1334

Sorry - didnt mean to post that twice.

SW17LS

Defaults are up yes, but they are still really low compared to other loans

davyjordi

as a millennial, you're absolutely wrong. we don't incur debt with the notion that we won't have to pay it back. circumstances often lead to defaulted loans, although very few millennials assume unfortunate circumstances. we want good credit, too.

SW17LS

And actually millenials as a generation are more averse to debt than their parents generation.

Johnhav430

That's what I thought, didn't want to take on debt, doesn't mean don't care about not paying back....if one thinks about the 80's excess, like the movie American Psycho, I thought milennials were the opposite, meaning didn't want to work 16 hours a day and make 250k first job, and if someone made more, then one up... or at least the priority wasn't on that....

this was the video that I was referring to, guitarist is really good (apparently he was with the band in their heyday)

davyjordi

^ what an apt song!

mmarshall

No offense....I wasn't necessarily refering to you personally. I was responding to Jill's earlier comment about today's young people taking on debt at a huge rate. Student-loan debt is only part of it.......but the situation with the college-loan defaults so bad that the government is simply writing much of it off.

mmarshall

With car-loan debt, yes, because they aren't buying as many new cars. But college debt, from government loans, has got a lot of kids way in over their heads. I talk to them every day when I'm swimming....a number of them work as part-time lifeguards during the summer. (And, some of the ones I know little more closely come to me with used-car questions).

Some of them are still living at home with their parents (especially with the Obamacare law that has them on their parents' health-insurance policy until age 26), but, of course, significant debt will probably come when they move out and get a place of their own....in most cases, they won't live with their parents forever.

Toys4RJill

I wasn't referring to millilenials not caring about debt or trying not to pay it off. What I mean is that the under 40 has so much stacked against them. The price of houses and the price of cars and the salaries are not increasing proportionally. Add in college, credit card debt etc etc. The new generation are so far in the hole that paying things off are close to impossible for most people.

Toys4RJill

Best explanation below:

Lenders charge prepayment penalties because it enables them to place the loan in a security and sell it; because another institution might buy that security, it will need assurance that the loan will be outstanding for a set period of time, which means the buyer will receive a certain yield from that security.

mikedozz

totally agree with you....college tuition is ridiculous, most parents cannot afford, the kids are graduating with 70k of debt right out the gate plus paying rent and expenses, it's tough.

pman6

If I had 50000 cash, I'd still borrow 50000 at 0% apr and pay it off in 10 years, if they had those terms.
I can then invest my own 50000 and get a bigger return.

i'm not rich, but I know rich people usually don't spend their own money. They spend other people's money

mmarshall

Yes.....I agree it's tough for some people today, just starting out, who aren't already established in life. I'm not sure I'd want to be in that position myself, as, 40+ years ago when I was starting out, jobs were much more plentiful, and you could start a career and plan on being with it for decades (like I was). Much of that has gone today, at least in the U.S., because of job-outsourcing and automation.....but to go into all the details and historical reasons why would not only be somewhat off-topic, but probably better left for the Clubhouse and Debate forums.