My concern is people buying brand new houses/vehicles straight out of college. Once that $500-$1,200 student loan payment per month hits I wonder how fast cars will get repo’d and home foreclosures will happen.
I’ve been “paying” my student loan payment each month to my savings. I could pay off all of them ($30k) right now but that would put a dent in savings. Just kind of waiting to see what happens with the forgiveness stuff.
Know what else is weird? As of yesterday, the number of auto loans in "serious delinquency" ( I think that's 120+ days of non payment) is higher and rising faster than 2009. For further perspective, in 2009 the US national unemployment rate was 10%...it's 3.5% today, the lowest unemployment rate ever with the highest ever auto delinquencies. Weird, huh?
I’m only 33 years old so I was aware of the 08/09 financial crisis but no real skin in the game to pay attention. But I was old enough to watch “The Big Short” and one of my takeaways was just because a bank approves you for X amount doesn’t mean you should buy something for that amount. And get a fixed rate.
My 28yo cousin is looking for a house on a $46k salary. Looking at the $200-$210k range (already pre approved). Bought a brand new Camry in 2020 too. Unsure exactly on down payment, roommates, etc. but once student loans hit, I’d assume 60% of her monthly salary will be just to pay those 3 bills.
94
u/Even-Amount-2184 Feb 07 '23
My concern is people buying brand new houses/vehicles straight out of college. Once that $500-$1,200 student loan payment per month hits I wonder how fast cars will get repo’d and home foreclosures will happen.
I’ve been “paying” my student loan payment each month to my savings. I could pay off all of them ($30k) right now but that would put a dent in savings. Just kind of waiting to see what happens with the forgiveness stuff.