Why do so many Latin Americans live in debt?
Why are so many young people in Latin America and the United States living in debt? In this episode of How It Affects You, we investigate the explosive rise in youth indebtedness: unpayable student loans, credit cards issued with little oversight, wages that don’t stretch far enough, and public policies that have failed to contain the crisis. In Chile, one in three young people says they are heavily indebted. In Colombia, thousands were left trapped after changes to ICETEX. In the United States, delinquency on student loans and credit cards is rising to levels not seen in over a decade. What’s going on? We analyze real-life cases, explain how the easy-credit trap works, which government decisions made the situation worse, and what separates useful debt from debt that drags you under. We also examine how social media, algorithms, and impulse buying are shaping this new culture of indebtedness.