While many Americans know that taking steps to cut credit card debt is a good way to successfully avoid bankruptcy, a new study has found that young adults who owe money to lenders generally have higher self-esteem.
Consumers between the ages of 18 and 27 who carry credit card debt and student loans generally feel more empowered because of the perception that they're in control of their own lives, according to a new study from the Ohio State University. This was particularly true of those who belong to the lowest economic class.
"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 Rachel Dwyer, lead author of the study and assistant professor of sociology at OSU.
However, those between 28 and 34 began to feel burdened by those debts, the report said.
Older consumers who are interested in taking steps to reduce debt may benefit from closely examining their finances to determine the best method for successfully cutting into their outstanding balances.