Report: Student Loans Stress Us More Than Any Other Debt
Being in debt is stressful. After all, owing money to creditors means you need enough income to pay the bills. It also means that your income is not yours – and the money allocated to pay down debt could leave you strapped for cash that you need for other things.
And while debt in general can increase your stress levels, not all types of debt are created equal. Indeed, a recent survey conducted by Morning consultation revealed that a particular type of debt stresses borrowers more than any other, and that is student loan debt.
Student loan debt causes more stress than any other debt
According to the recent Morning Consult poll, 64% of adults feel a little or a lot of stress about undergraduate student debt, compared to 60% who feel a little or a lot of stress about credit card debt. credit; 42% who are worried about mortgage debt; and 42% who feel at least some stress about auto loans.
Not only are adults more likely to worry about student loan debt, they are also more likely to be the cause of major concern. In fact, 45% of adults said they feel a lot of stress about undergraduate student loans, compared to 30% who are very concerned about credit cards, 18% who are very worried about mortgages and 21%. % who feel a lot stress about auto loans.
What If You Are Stressed About Your Student Loans?
Being stressed out about student loans is natural. After all, our research showed that 44.7 million student loan borrowers collectively owe about $ 1.59 trillion in debt, and up to 5.2 million of them are in fact in default on their federal student loans.
In addition, 20% of borrowers are late in their payments. Student loan balances are also high for most borrowers – the average debt of graduates who borrowed reached $ 28,650 in 2017.
And while there is an inherent financial strain in owing a lot of money, it doesn’t mean that it’s healthy to live with a lot of stress about your debt. In fact, if you are among the 64% of adults who stress about student loans, you should consider finding ways to alleviate your worries.
The right course of action will vary depending on what stresses you out the most. If you’re worried that you won’t be able to make monthly payments, for example, it’s a good idea to consider a income-based repayment plan. Available for federal student loans, this type of plan caps your payments at a percentage of your income.
But if you’re worried about how persistent debt will affect your lifestyle, you might instead want to make a plan to get out of debt as soon as possible by doing big extra payments owed your student loan debt.
The important thing is to identify why your loans are stressing you out, and then explore options, such as changing your payment plan or refinancing your loans, to minimize your worries.
You Don’t Just Have To Live With The Stress When You Have Student Loan Debt
If you are worried about what you owe on your student loans, the statistics clearly show that you are not alone. The good news is that there are options you can explore. By taking steps to manage your situation, we hope you will be less concerned about your outstanding student debt. By being proactive in resolving your concerns, you can hopefully find a solution that’s right for you.