Credit card debt is exorbitant

Wednesday, March 7, 2018

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In a previous edition I mentioned an article in the Democrat Gazette that came from Bloomberg news concerning America's household debt. The primary interest of the article I wrote concerned Student Loan Debt and the fact that it does allow many young people a means of continuing their education primarily in a college. The downside to using a student loan is the responsibility of repaying the borrowed money at the same time one is starting their career at an entry-level pay grade. That probably isn't a problem in many career fields, but not all students graduate with a degree in Computer Science or Engineering. As I mentioned, the average student has a debt obligation similar to that of a new car loan. The cost of an education in college has gone up dramatically since I graduated in 1963 as has the cost of an automobile. Tuition, books and room and meals at a boarding house cost about $2,000 per year. A new car costs approximately $2,000 if one didn't get too many luxury items on a medium-sized American model. The biggest difference I see between then and now has been in the average person's real income. The cost of most services like medical care and prescription drugs and other items like housing, cars and vacations have gone up much faster than actual income of the average worker in real dollars.

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