It still will pay to get an education, but perhaps not quite as well as it once did. A recent survey shows that twenty percent more university educated people filed for bankruptcy than they did 5 years back. The age and income of filers has also increased.
Acquiring a graduate degree no longer means you will have a career
Tuesday, the Institute for Financial Literacy report was released. It showed, from 2006 to 2010, that there was an increase in the quantity of bankruptcies filed by those with graduate degrees from 11.2 percent to 13.6 percent.
About 70 percent of filers are people that do not have a university diploma. But the study showed that those with associates and bachelor's degrees also filed at a greater rate than in previous years. Those with just a high school education have a greater chance of filing. These people make up for about a 3rd of all filings done.
Leslie Linfield is the Institute for Financial Literacy creator. She said:
"There's these mythologies out there that if you go to college and you get a degree, you're going to do financially better. I think this data is starting to erode at this myth. ... The Great Recession has had a dramatic impact on the bankruptcy filings of American consumers across the economic spectrum -- including college-educated, high-income earners."
More than 50,000 surveyed
The study was conducted from 2006 to 2010, involving more than 50,000 debtors in bankruptcy credit counseling or money management courses. Its reason was to track bankruptcy statistics following the 2005 Bankruptcy Abuse Prevention and Customer Protection Act. To be able to control those who were able to file bankruptcy, the BAPCPA was signed by President Bush.
Considering various factors
"While less educated, low-income individuals continue to represent the typical bankruptcy filer," Linfield said, "this report underscores a sophisticated evolution of the profile of the American debtor that now extends to disparate age, income and ethnic groups."
In 2006, those between 35 and 44 accounted for the majority of the filings. It changed to be between ages 45 and 54 last year. Linfield finds them particularly at risk. "At 54," she asked, "do they really have enough time in front of them to start over?"
The study also showed that the quantity of filers making more than $60,000 leaped by 66 percent.
There was a large increase for Asian Americans. It increased to 4.5 percent from 2.1 percent. There was also an increase from 6.5 percent to 8.7 percent in Hispanic filers. A decrease from 15.4 percent in 2006 to 2010's 11.3 percent was shown for African-Americans. This shows a huge decline in numbers.
Why is it taking place?
There has been a ton of career loss, which has caused much of the problems to occur, according to Linfield. Consumers responding to the study cited over-extended credit, career loss and reduction of income more than any of other reasons as the causes of their financial turmoil.
There was a rise in the quantity of bankruptcies filed in The United States last year. They went up 1.5 million, the New York Daily News reports.
Acquiring a graduate degree no longer means you will have a career
Tuesday, the Institute for Financial Literacy report was released. It showed, from 2006 to 2010, that there was an increase in the quantity of bankruptcies filed by those with graduate degrees from 11.2 percent to 13.6 percent.
About 70 percent of filers are people that do not have a university diploma. But the study showed that those with associates and bachelor's degrees also filed at a greater rate than in previous years. Those with just a high school education have a greater chance of filing. These people make up for about a 3rd of all filings done.
Leslie Linfield is the Institute for Financial Literacy creator. She said:
"There's these mythologies out there that if you go to college and you get a degree, you're going to do financially better. I think this data is starting to erode at this myth. ... The Great Recession has had a dramatic impact on the bankruptcy filings of American consumers across the economic spectrum -- including college-educated, high-income earners."
More than 50,000 surveyed
The study was conducted from 2006 to 2010, involving more than 50,000 debtors in bankruptcy credit counseling or money management courses. Its reason was to track bankruptcy statistics following the 2005 Bankruptcy Abuse Prevention and Customer Protection Act. To be able to control those who were able to file bankruptcy, the BAPCPA was signed by President Bush.
Considering various factors
"While less educated, low-income individuals continue to represent the typical bankruptcy filer," Linfield said, "this report underscores a sophisticated evolution of the profile of the American debtor that now extends to disparate age, income and ethnic groups."
In 2006, those between 35 and 44 accounted for the majority of the filings. It changed to be between ages 45 and 54 last year. Linfield finds them particularly at risk. "At 54," she asked, "do they really have enough time in front of them to start over?"
The study also showed that the quantity of filers making more than $60,000 leaped by 66 percent.
There was a large increase for Asian Americans. It increased to 4.5 percent from 2.1 percent. There was also an increase from 6.5 percent to 8.7 percent in Hispanic filers. A decrease from 15.4 percent in 2006 to 2010's 11.3 percent was shown for African-Americans. This shows a huge decline in numbers.
Why is it taking place?
There has been a ton of career loss, which has caused much of the problems to occur, according to Linfield. Consumers responding to the study cited over-extended credit, career loss and reduction of income more than any of other reasons as the causes of their financial turmoil.
There was a rise in the quantity of bankruptcies filed in The United States last year. They went up 1.5 million, the New York Daily News reports.
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