Struggling with debt is one of the most troubling and stressful issues that many New Jersey residents deal with on a daily basis. Medical bills, mortgages, credit card debt and unpaid loans affect millions of people across the country.
A new report suggests that these debts can start accruing before a person even gets their first job, setting the stage for years of financial turmoil. According to the report, 40 million Americans have student loan debt and the issue is troubling enough to warrant new and more effective policies and relief strategies.
Student loan debt is not only affecting the individuals who are carrying it, according to the report. The sheer size of the total balance, which is estimated at $1.2 trillion, is taking a toll on the housing market, retirement funds, certain professions and consumer spending.
With so much student loan debt looming over the heads of Americans, fewer people are buying homes and cars, saving for retirement or pursuing jobs that pay less. The economic impact of these behaviors is substantial.
That is why the issue has become such a concern for politicians and lawmakers, and reform solutions are reportedly on the horizon. Some of the potential answers could come in the form of amended repayment plans, adjusted loan-approval policies and revised methods of weighing degrees from different colleges and universities.
No matter what type of debt people are dealing with, it can be crucial to seek out effect methods of debt relief. For some people, this can include bankruptcy, loan modifications, repayment plans and other solutions. With the help of an attorney experienced in helping people resolve debt issues, people can tackle their debt and make a fresh financial start.
Source: USA Today, “The long-term impact of student-loan debt,” Pooja Bhatia, March 3, 2014