Young People May Benefit From Debt

A recent study from Ohio State University showed students and post-graduates alike may have an increase of self-esteem if they have some loan and credit card debts.

The report, by assistant sociology professor Rachel Dwyer, found those between 18 and 27 years old feel more confident about their financial situation if they had some debt to their name.

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

Some people are positively affected by the debt because they think they will better plan on how to invest in their future, the report said. Those who take out a large amount of loans, or have high credit limits can end up spending much more than their budget would allow, leaving the possibility that they will damage their credit ratings, and not be able to pay back the funds.

Consumers who accrue debt but are able to manage it, should be careful and may want to make sure they are able to pay it off.