I don’t know if this report is entirely accurate, but it was interesting to think about. Apparently in the US there were plans to forgive a large amount of student debt where anyone would love having more money to actually survive after school such as buying a home. But in this report you can see how it implied that 73% of borrowers will spend their money on travel and dining if their student debt was wiped out.
How can that be real huh? Then again, I suppose it’s not unheard of. It kind of shows the value of actually earning and paying your own way out of debt where odds are once you are debt free you will continue to practice those good financial habits in an effort to stay debt free and potentially finding ways to make more money. Largely because you know how difficult it was to get out of it and wouldn’t want to go back.
But in these cases that is the scary thing where if you fortunately have someone else erase the debt that you have incurred in life then odds are one will just repeat the cycle in different ways since they never really learned how to manage their finance. Similar to those stories where someone very poor was just given a lot of money only for them to blow through it pretty quickly on luxury items. If these statistics said 20% of the people would travel and dine out then that would seem more rational. But 73%? Again, it almost doesn’t sound real.