Rising Consumer Credit Is Increasing The Risk Of Default

The latest report by the Federal Consumer Financial Protection Bureau (CFPB) shows that the number of Americans, aged 60 and more, with some type of student loan increased four times in the decade 2005 to 2015, from 700,000 to 2.8 million. Many were found borrowing student loans to help children and grandchildren college finances, after which they struggled to, meet their own financial needs. The sharp increase in such debt-laden senior demography therefore raises concerns about credit being used to meet life’s needs. The condition could well lead to older generation being vulnerable to financial insecurities, reports David Newville of the CFED.