Millennials struggling with massive debt

CHICOPEE, Mass. (WWLP) – The traditional path of finishing school, beginning a career, and buying a home to settle down is out of reach for many young Americans.

Many of the members of the Millennial generation lucky enough to land jobs after school dedicate more than half of their paychecks to paying down debt.

According to new research by Wells Fargo, young Americans are most overwhelmed by the debt they carry from credit cards, followed by mortgages and student loans. A third of them don’t think they will ever enjoy the same standard of living as their parents. It’s hard to save when anything extra goes toward what they owe.

“I bought a car thinking I’d be able to make payments all the time on time, and in this economy you just can’t,” Rachel Descault of Chicopee said. “I can’t even fathom buying a house right now.”

On Monday, President Obama proposed new regulations to allow five million more students to cap their federal loan payments at 10% of their income. After 20 years, the remaining loan balance would be forgiven.

Wednesday, Congress will vote on Massachusetts Senator Elizabeth Warren’s bill for borrowers to refinance loans at lower rates.

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