Who's Most Likely To Be In Debt In 2012?

"There can be little doubt that the U.S. is hovering on the edge of a recession as we head into 2012. This is forcing many social demographics to grapple with significant levels of debt, but who is most likely to suffer financial hardship as we head into a brand new year?"

"Household debt burdens have continued to fall through the last financial quarter. That said, there remains a significant level of household debt within the U.S., and this situation is unlikely to improve with unemployment expected to remain high throughout 2012."

"The issue facing families and homeowners in the U.S. is one of multiple debts and the prospect of having to prioritize what gets paid as a matter of urgency. When you consider that the average debt per household in the U.S. (not including mortgage repayments) stands at approximately $14,500, then you begin to understand the amount of repayments that may be missed in order to maintain a family home."

"It is all too easy to forget about student debt as the year draws to a close, but the fact remains that this is potentially even more of a threat to the U.S. economy in 2012. Mortgages can be sourced with an interest rate of as little as 5% in some instances. However, student loans are often available at rates of anywhere between 6.8% and 7.9%. This makes them considerably more expensive in comparison, especially given the fact that they do not secure a tangible assets or boast a specific value."

"This is not to say that education is not valuable. It is just that it does not offer the same level of financial security that a house or an automobile does. Student loans can live with graduates for an entire lifetime, and certainly hinder them as they enter an economy where unemployment is high and job creation is low. With student loans set to top the $1,000 billion mark for 2011, it is clear that an increasing number of students are attending college and therefore taking on an enormous amount of debt and financial liability. Considering the rising cost of loans bills and exaggerated rates of repayment, 2012 could be a worrying year for graduates and college students."

"An increasing number of U.S. citizens aged 60 and over are approaching retirement age heavily burdened by debt. Mortgages remain the most significant problem for this demographic. Thirty-nine percent of home-owners aged between 60 and 64 held primary mortgages in 2010, with a further 20% owning secondary mortgages. These figures had nearly doubled those recorded in 1994, revealing that an increasing number of citizens were still burdened with significant repayments well into their twilight years. This problem has only been exacerbated by the steep drop in housing value, which has left many with negative equity and facing difficult times ahead in 2012 and beyond."