Along with municipalities struggling in this country, I’ve been warning readers about another potential debt catastrophe. Student debt in America has crossed the $1.0-trillion mark. Student loan debt is now larger than the country’s total credit-card debt (source: Consumer Bankers Association). So much for encouraging consumer spending . The Federal Reserve Bank of New York recently reported that roughly 27% of student loans were more than 30 days past due. Don’t expect that 27% to increase consumer spending. (Also see: U.S. Student Loan Crisis Developing .) The reason for this distress in paying student debt is the weak economy that is not producing enough quality jobs with good salaries, placing great strains on consumer spending. The Bureau of Labor Statistics estimates that the current unemployment rate for those aged 20-24 is close to 14%, while the unemployment rate for those aged 25-34 is 8.7%. While the Bureau of Labor Statistics estimates the unemployment rate among these age groups, it doesn’t capture the underemployed—workers taking lower paying jobs or part-time work or work that doesn’t reflect their skill set—accurately, but just last month, the Pew Research Center released its latest study on the situation. It finds that the unemployment rate among the young is double the national average, placing more strain on consumer spending. It also finds that, although all age groups were hit hard during this latest recession that began in 2007, those aged 18-24 were hit the hardest, as evidenced by the unemployment rate. This certainly affects consumer spending. Those who are lucky enough to get jobs are likely to experience pay that is 10%-15% lower than those with experience (consumer spending increase?). This 10%-15% discrepancy is expected to last at least a decade before they finally catch up in higher salaries. Of course, the debt and interest on the student loan debt doesn’t wait for the newly employed to “catch up,” which will affect consumer spending as well. PNC Financial Group released a study that revealed that 60% of those aged 20-29 are stressed about their debt. Although mostly burdened by student debt, the debt burden is increased by credit-card debt and car loans. The average debt amount for those aged 28-29 was $78,000, according to the study. Don’t expect increases in consumer spending by this group. Only six percent of those surveyed were saving for retirement. Can you say “crisis,” dear reader? What does this all mean? First, with younger people who are a huge part of the economy being so highly indebted, don’t expect drastic increases in consumer spending. Also, it is no wonder they are not participating in the real estate market at record low levels—they don’t have the financial means …