Want Better Self-Esteem?

[monks]

Daily Mail

Being crushed under a mountain of debt is typically frowned upon.

Not being able to pay for goods outright, and then being hit by extortionate interest rates which spiral out of control, is the stuff of financial nightmares.

But new research has suggested this could actually be a dream scenario for many young adults.

It claims those saddling themselves with credit card debt will feel empowered and have better self-esteem.

'Debt can be a good thing for young people – it can help them achieve goals that they couldn't otherwise, like a college education,' said Ohio State University assistant sociology professor Rachel Dwyer.

Her study found that 18 to 27-year-olds who had huge credit card and university loan debts had better self-esteem than their peers.

They also felt as if they were more in control of their lives, especially those in the lower economic classes

Only the oldest of those studied, between 28 and 34, began showing signs of stress about the money they owed.

Professor Dwyer said her team was 'surprised' at the results of her research into 3,079 young adults which examined data on two types of debt - loans taken out to pay for university and total credit card bills.

She said: 'We thought educational debt might be seen as a positive because it is an investment in their future, while credit card debt could be viewed more negatively.

'It didn't matter the type of debt, it increased their self-esteem and sense of mastery.''Surprisingly, though, we found that both kinds of debt had positive effects for young people.

'Some young people may be using credit card debt to help finance their college education – for items like textbooks - which is why they may see it as a positive. But there is no way to know that from the data.

'Obviously, they are probably using credit cards for multiple purposes. Along with education spending, they could be using credit cards to pay for non-essential items.

'They may feel good about their debt only because it allows them to buy the things they want without having to delay gratification.'

Professor Dwyer admitted that the results, which appear in the Social Science Research journal, offered 'some worrying signs' about how young people view debt.

She said: 'Debt can be a positive resource for young adults, but it comes with some significant dangers. Young people seem to view debt mostly in just positive terms rather than as a potential burden.'

But how debt affected young people depended on what other financial resources they had available, the study found.

Results showed that those in the bottom 25 per cent in total family income got the largest boost from holding debt.

The more debt they held, both education and credit card, the bigger the positive impact on their self-esteem and mastery.

So there we go... debt is more than wealth, it's the secret of eternal happiness !

[Guest_FaFa!_*]

So there we go... debt is more than wealth, it's the secret of eternal happiness !

Cart before the horse with that one. Credit binges don't cause people to think they are worth it. People who think they are worth it go on credit binges. Lazy brain dead hack syndrome strikes again.

[Lambie]

Daily Mail

So there we go... debt is more than wealth, it's the secret of eternal happiness !

The human capacity for self delusion is both our greatest strength and biggest weakness

[rw42]

I can see 2 cases where that'd be true:

- You're taking on debt to improve your prospects in the hope that your earnings potential will be increased when you have a chance to pay it off.

- You took on the debt, spunked it on enjoying yourself and are blissfully ignorant about the whole concept of 'paying it back'.

Any wagers on the split between the two?

Anyway - i agree strongly with ''Debt can be a good thing for young people – it can help them achieve goals that they couldn't otherwise, like a college education''

The key being it CAN be good IF it is used to enhance their potential. Debt, just like actual wealth, gives you more options than you'd otherwise have. Which makes the 'Results showed that those in the bottom 25 per cent in total family income got the largest boost from holding debt.' line make sense - someone who had bugger all options available, finds more options with some money in their pocket.

Nothing in the study about stress/unhappiness being caused by being unable to pay back the debt though..

[cassiedog]

I can see 2 cases where that'd be true:

- You're taking on debt to improve your prospects in the hope that your earnings potential will be increased when you have a chance to pay it off.

- You took on the debt, spunked it on enjoying yourself and are blissfully ignorant about the whole concept of 'paying it back'.

Any wagers on the split between the two?

Anyway - i agree strongly with ''Debt can be a good thing for young people – it can help them achieve goals that they couldn't otherwise, like a college education''

The key being it CAN be good IF it is used to enhance their potential. Debt, just like actual wealth, gives you more options than you'd otherwise have. Which makes the 'Results showed that those in the bottom 25 per cent in total family income got the largest boost from holding debt.' line make sense - someone who had bugger all options available, finds more options with some money in their pocket.

Nothing in the study about stress/unhappiness being caused by being unable to pay back the debt though..

But with cash strapped uni's and government who's forking out for these studies.. eh? could it have been a bank?

[rw42]

But with cash strapped uni's and government who's forking out for these studies.. eh? could it have been a bank?

Meh. My point was that the article is tending to view any debt as a good thing that increases self-esteem, rather than examining good reasons to get in debt and bad reasons to get into debt.

Personally i find that money is never a problem - as long as i've got enough to do what i want to do . It's not the end goal in itself, i'm not in any rush to accumulate money, i just don't want to worry about it. But then there is a ladder of worries - enough money for survival, enough money for improvement, enough money for enjoyment, ..

[leicestersq]

There ya go see, it is good for me and my debt slaves.

Mww Ha Ha.

[winkie]

Classic case of mistaking causation and correlation.

I think people who borrow lots will often have greater confidence. Often the confidence of ignorance. People who are bullish and willing to gear themselves up to the hilt often have that chutzpah, that sheer stupidity, that luck even.

...the confidence of knowing where to put it then how to avoid paying for it.

[Nationalist]

I agree with the because I'm worth it theory. Then they reach 30 and realise they're not worth it after all....

[interestrateripoff]

http://www.dailymail.co.uk/sciencetech/article-2000681/Want-better-self-esteem-Saddle-mountains-credit-card-debt-new-study-claims.html

Being crushed under a mountain of debt is typically frowned upon.

Not being able to pay for goods outright, and then being hit by extortionate interest rates which spiral out of control, is the stuff of financial nightmares.

But new research has suggested this could actually be a dream scenario for many young adults.

It claims those saddling themselves with credit card debt will feel empowered and have better self-esteem.

A great new tag line for govt debt, because it makes you feel better knowing your up to your eyeballs in debt. Adding £150bn a year to the national debt, improves the nations self esteem.

[bobthe~]

I agree with the because I'm worth it theory. Then they reach 30 and realise they're not worth it after all....

Absolutely. I think that this would serve better as an example of how young people think they are immortal, won't grow old and will never hit a point where their career flounders.

A proper study would include following those people through life and see which ones end up as bankrupts, with CCJs, IVAs and at the worst end, taking a shotgun to their family and then themselves, or chowing down on a large amount of Carbon Monoxide via their car exhaust.

[winkie]

http://www.dailymail.co.uk/sciencetech/article-2000681/Want-better-self-esteem-Saddle-mountains-credit-card-debt-new-study-claims.html

A great new tag line for govt debt, because it makes you feel better knowing your up to your eyeballs in debt. Adding £150bn a year to the national debt, improves the nations self esteem.

Ha....it's all propaganda to keep the plates spinning.....what can be done to help get people spending and borrowing?.....you're worth it.

[gravity always wins]

I thought people shopped (especially on credit) to make themselves feel better. ie they were a bit sad before they bought the new shoes but now they aren't until the feeling wears off.

I am allergic to shopping and debt so its only what I had heard.

[maxdiver]

I used to have a Saturday job and earned about £40 a week for it.

It was ok but I missed having my time to myself at the weekend.

Then I went to college and got loads of overdrafts, Student Loans, Credit Cards.

Well - my course in engineering wasn't for me so I quit and went travelling around the world - everywhere like Sydney, Melbourne, Thailand and a roadtrip from Los Angeles to New York. I even spent 2 weeks working in a village in Laos for charity - that was really life-affirming.

Anyway - I'm now doing Social Media Studies at the University of Stockport.

I'm getting an IVA and will never repay the student loan - life couldn't be any better.

I do worry about the evil Tory cuts though.

[billybong]

The study was conducted by Ohio State's Centre for Human Resource Research, on behalf of the U.S. Bureau of Labour Statistics, and alongside Randy Hodson, professor of sociology at Ohio State, and Laura McCloud, an Ohio State graduate now at Pacific Lutheran University.

I imagine they just didn't want to pay for the 2nd half of the study about when the lenders/banks decide to start chasing debtors for any debt outstanding.

[zebbedee]

Um at first I was incredulous at what I was reading then it dawned on me of course the feel good, they've got money to burn then in thier late 20's they realise they've spunked the money, paid it back twice in interest and still owe it and reality dawns. And in thier late 30's when they've paid it back 5 times over and still owe it they sat fvck it pop a bucket load of pills and bid thier farewells, no how happy and good do they feel?

Edited June 8, 2011 by zebbedee

[spyguy]

Um at first I was incredulous at what I was reading then it dawned on me of course the feel good, they've got money to burn then in thier late 20's they realise they've spunked the money, paid it back twice in interest and still owe it and reality dawns. And in thier late 30's when they've paid it back 5 times over and still owe it they sat fvck it pop a bucket load of pills and bid thier farewells, no how happy and good do they feel?

+1

Classic low-burn buyers remorse ,all with a 30% APR.

[Nationalist]

I used to have a Saturday job and earned about £40 a week for it.

It was ok but I missed having my time to myself at the weekend.

Then I went to college and got loads of overdrafts, Student Loans, Credit Cards.

Well - my course in engineering wasn't for me so I quit and went travelling around the world - everywhere like Sydney, Melbourne, Thailand and a roadtrip from Los Angeles to New York. I even spent 2 weeks working in a village in Laos for charity - that was really life-affirming.

Anyway - I'm now doing Social Media Studies at the University of Stockport.

I'm getting an IVA and will never repay the student loan - life couldn't be any better.

I do worry about the evil Tory cuts though.

Does you life plan involve supporting yourself at any point? How about supporting some dependants, like a wife and children? Or are you planning to be a parasite all your life? Just wondering...

[cassiedog]

I used to have a Saturday job and earned about £40 a week for it.

It was ok but I missed having my time to myself at the weekend.

Then I went to college and got loads of overdrafts, Student Loans, Credit Cards.

Well - my course in engineering wasn't for me so I quit and went travelling around the world - everywhere like Sydney, Melbourne, Thailand and a roadtrip from Los Angeles to New York. I even spent 2 weeks working in a village in Laos for charity - that was really life-affirming.

Anyway - I'm now doing Social Media Studies at the University of Stockport.

I'm getting an IVA and will never repay the student loan - life couldn't be any better.

I do worry about the evil Tory cuts though.

Yes.... we've been far too soft on 'our little darlings' and it's the most shortsighted way of 'educating' them for what is going to be the rocky road ahead.

We now have a largely work shy nation of teens and young adults who just don't have what it takes to survive when things get tough. The whole Idea of getting 50% on university courses was just a delay tactic to stay in government. but it would have to pay it's way eventually... I wonder what the Labour 'plan' was for the next term in office?

[Si1]

I presume this is a wind up.

Anyway - IVA's don't wipe out student loans. Bad luck.

+1

[Injin]

I presume this is a wind up.

Anyway - IVA's don't wipe out student loans. Bad luck.

Borrow money, repay student loan.

Default on borrowing.

Ta da.

The non default thing just makes sure private lenders get it in the shorts.

[the stig]

If i had my time again i'd borrow as much as possible in my early 20s before accumulating any large assets. Mix up the spending between travel, partying and buying precious metals to keep buried in my parent's garden. Then spend a few years under an IVA paying a small % of it back. Rinse and repeat (though obv with a much worse credit rating each time).

That seems to be the way to play the game nowadays. Mate of mine has less stressful job than me and much, much lower income, yet enjoys holidays and is no less content, just with an IVA covering the borrowing up to now.

I realise all of this is a dramatic over-simplification