Why Some Young Consumers are Risky Borrowers

The range of choice available to financial consumers has increased dramatically in recent years and growing evidence suggests that in the complex real world many financial consumers rarely have a comprehensive idea of what behavior may serve their interests in the best way. This is important since consumers’ bad financial decisions may not only negatively affect their short-term liquidity but may haunt them for years after they are made. Obviously, this is especially critical for young adults who often carry large amounts of student loans or credit card debt, which in turn may hinder their future ability to accumulate wealth.