WASHINGTON, D.C. (3/1/13)--Since the Great Recession, young adults have bought fewer homes, purchased fewer cars, and accumulated less debt than they did before the recession, and they are shedding debt faster than older generations, says a Pew Research Center analysis of government data.
For credit unions, this may mean delayed gratification in lending to this group. It also means an opportunity to build relationships with young adults before they get to the end zone in taking out larger loans.
This shedding of debt is an about-face from pre-recession years, when adults younger than age 35 racked up record debt-to-income debt, according to the report, which the Washington, D.C.-based Pew released on Feb. 21. Since the recession, they have shed that debt at a faster rate than older adults-- not because they are paying off the debt, but because they aren't taking on any new debt, including houses and cars.
Pew analyzed Federal Reserve Board and other government data for the report. It found: