How Twenty-Somethings Became Debt Scapegoats

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I did what I was told to do. I went to college. I double majored in business and music. I worked part time jobs the whole way through so I could eat food that didn't make me sick. My parents TOLD me to go to college. When the acceptance letters came, one school offered a sizeable academic scholarship. I graduated at the top of my class. Of course I had to take it. Nobody asked, "Are you going to college?" They asked, "WHERE are you going to college?" My third year at school, the administration decided to build an athletic stadium that I NOT ONCE set foot in or used for any purpose. My tuition soared. My first year cost me $2000 out of pocket (at a private school, which was cheaper than any public school's offering). By the time I had my degree, I was over $80000 in debt.
It's completely my fault. I admit it. I was REALLY stupid for thinking I could afford college. And now I'll never pay it off, because the loan payments are the cost of a mortgage ($800 a month), except I also have to pay for housing at the same time. I wish I'd just bought a house instead and gotten work experience. Oh and interest only payments (a total racket!)? They want $450 per month for INTEREST ONLY. I could pay that every month for the rest of my life and NEVER pay off my actual debt.
What am I doing now? Working as a store manager: at $10.50 an hour. And glad to have the employment. It's enough to live on, until they start garnishing my wages, that is. What bothers me the most is that I wasted valuable time getting "educated" (ripped off) when I could have been working my starter management job 4 years ago and be somewhere better now. Oh, and I could totally be doing this WITHOUT a college education.
I guess I'm hoping for massive inflation so that one day, the amount I owe now will be the same as people pay for jeans. Then at least it would be as worthless financially as it is practically.

Angry Bird of NC 12:55PM March 21, 2012

Credit and The Laws
People are losing their homes, transportation, jobs and their dignity. I see people every day with hardships. Some might be caused by nature, or mistaken judgment, maybe even by an accident, greed, or some illegitimate act. Whatever the reason everybody has bad times in their lifetime, and they deal with it the best way possible.
What I see less of is understanding and trust. I'm sure most people would pay their bills if their creditors where more understanding. Years ago creditors cared about the people and companies that kept them in business. They were honest with real customer service. They would work with their customers if they had a problem.
The Credit Bureaus are a big part of the problems. The FICO scoring system is discriminating, and a unfair way of scoring someone's honesty. Creditors can ruin your credit via the Credit Reporting Agencies without LEGAL PROCESS. The scores and credit reports are abused by, banks and other financial institutions lending money or credit. I think it would be easier to break Russian code then understand this coding system. The FICO score should be justifiably about do I pay my debts?
Banks say they care about the small business owner and homeowners and yet the banks close up or bankrup everyday. They don't care why because they can and the government gave them that power. If the bank would work with their creditors instead of foreclosing on them they wouldn't be in the mess there in, and stuck with all those empty buildings and homes everywhere.
Today they don't care if they keep you as a customer Most of today's companies put quantity ahead of quality. A lot will misrepresent the public with false or deceiving advertisements to sell their products or service. Most will do or say almost anything to get your money. I don't think they care if their product is safe, or legal as long as it sells. So why aren’t the laws that are supposed to protect the public doing their jobs? Why are the Congress and Senate now fighting all attempts at financial reform. There is only one dictatorship in America and that is the Congress and the Senate as they have no term limits. But we all agree that the Congress and Senate should all be fired because of the way they are acting. I do not mean just the republicans but both make a two year olds actions look smart. I only have one question for the Democrat and the Republican Congress and Senate. “Is Wall Street in control of your vote?”
Don’t make a federal case out of something simple and understanding. With the mortgage crisis and the economy in a mess don't sell out the real American that works hard at a low wage job. They're the one you will need to rebuild this economy later.

Floyd of TN 4:52AM August 27, 2010

I have always disliked this penchant of the world to stereotype groups of people. Of course there are commonalities among any group, but to try to fit an entire generation of people into one generalized mold simply does not work. I know my share of both ends of what is called the 'Gen Y' generation. There are those which are holding a good job and headed for the top and there are those that live on a minimum wage job, are in debt to their eyeteeth and are helping use up their parent's retirement funds to help support them. (I certainly cannot say that it is entirely their fault. It is the parent's choice after all!) The point is, in any generation, there are the go getters and those who believe the world should take care of them. Gen Y is no exception. It comes down to the individual choices that we all make. Some families live together for economic reasons, but many others live together to have the love and support of family around them. This is nothing new. It was happening in the 1800s and is still happening today. It is unlikely that it will change for hte next generation either.

Cindy of CO 5:25PM August 26, 2010

We're not baby boomers. It is still too early to say what mid-life crises will be like, but I expect that 20-somethings today will be relatively more frugal during their mid-lives than past generations.
What's wrong with living with your parents? (I, personally, don't do it.) But all of the past generations did this. We aren't relying on them financially. It's love and support... And, usually, at 20-25, we're still in college. Living at home does mean free rent.
We have no money? Just about every career-minded 20-something I know is earning more than either one of his parents. In some cases, they are earning more than both parents!

Anthony of LA 8:05AM August 26, 2010

great story, Bill! Thanks for sharing.

Kim Palmer of DC 11:42AM August 25, 2010

Last year, as senior citizens visiting Houston, TX, a young man (22 or 23) was in
a hurry to get to his hourly job. He backed into our rental car seeking another
way out of the CVS parking lot we were in. His "beaten up old car" caused minor
damage to our rental car ... but there's always the worry that the rental agency
will balloon a minor scrape into a whole new paint job. This young man's insurance had elapsed, but he called us twice to assure us he "would make us whole" if we had to pay anything. We reported the accident to our insurance
carrier, and miraculously the rental company said "forget it." We called the
young man with our good news. We know there are other young people out there just as honest as this guy. Amen.

Bill of VA 9:36AM August 25, 2010

Eh, they said the same thing about Generation X, working in coffee houses and listening to grunge. Feeling and acting disenfranchised.
Twenty years later and yikes, we're managers and ceo's of our own start-up's.

Karen of GA 3:14PM August 24, 2010