(Zero Hedge) As the storm clouds of peak stupidity gather over the heads of the millennial generation who were conned by banks, government, and universities to take out excessive amounts of leverage in auto loans, credit cards, and student debt; millions have flocked to a new website seeking ‘Sugar Daddies’ and or even ‘Sugar Mommies’ to pay off their debt amid an economic environment where wage growth remains non-existent.
by Zero Hedge, November 15th, 2017
Today’s real simple get-out-of-debt option for the broke college/post college millennial is through an unconventional dating website called SeekingArrangement.com.
In 2016, the website identified some 2.5 million college students who turned to the site in an act of desperation to find a ‘Sugar Daddy’ or even a ‘Sugar Mommy’ in exchange of personal time for straight cash.
The website’s mission is to “delivers a new way for relationships to form and grow. Sugar Babies and Sugar Daddies or Mommas both get what they want, when they want it”.
We find it hard to believe the intention of the website, when created by MIT graduate Brandon Wade in 2006, was to have 25% of the 10 million users—broke college millennials.
According to Business Insider,
A couple years ago, the site noticed an uptick in the number of members signing up with a university email address, Alexis Germany, a spokesperson for SeekingArrangement.com, told Business Insider.
It decided to launch a marketing campaign – dubbed Sugar Baby University – targeting indebted college students and young people who are interested in college but afraid of taking on massive loans.
In total, Americans owe more than $1.3 trillion in student loan debt to federal government agencies and or private lenders.
As explained by UBS strategist Matthew Mish, millennials have never been more in debt and this shocking development could hint why millennials are resorting to an online dating site, in the millions to trade sex for their next debt servicing payment.
Exploring the data from UBS, the divergence between consumer delinquencies and the unemployment rate at record lows signals wage growth is non-existent at a time when millennials’ leverage is high.
And lastly, who took on all those $40,000, 0%, 80-month loans all so they could drive around in a brand new BMW they couldn’t afford? Well, if you guessed millennials in the lowest quintile of wages earners in the country then you’re absolutely right!
As Mish points out in Figure 7 below, the median debt-to-asset ratio for Americans under the age of 35 has surged over the past couple of decades from ~40% to a staggering 100%”.
With the financial security of the millennial in grave danger, as per UBS strategist Matthew Mish’s charts, we start to get the sense of why millennials are flocking to SeekingArrangement.com.
First, Sugar Daddies and or Mommies have an average annual income of $250,000 and the average net worth of $1.5 million. The simple term in life: ‘follow the money’ seems to be at play here. Sugar Daddies and or Mommies have a monthly membership of $80.00 per month, meanwhile the website allows a broke college student free of charge.
Here are the benefits of a ‘Sugar Daddy’:
Browsing the ‘Sugar Baby Female’ mill of broke millennials. We find this:
Here are the disturbing ‘Sugar Daddies’ preying on broke desperate college millennials:
Business Insider, Tanza Loudenback, interviewed a broke college millennial by the name of Christina, 29-year old, and user of SeekingArrangement.com.
Christina said she isn’t willing to have sex for money, but has received over $90,000 for education-related costs from her ‘Sugar Daddies’.
The MBA student at Michigan State University living in Las Vegas said,
That was when it finally set in and I was looking at the prices and I was looking at how much debt I was getting in and I had already started my MBA. I was like, I can’t afford this, I’m going to be paying this off for years and years and years.
In addition, she made it clear that she isn’t interested in “one-night stands”.. We find that hard to believe.. Here’s what she said:
I’m not a person that is interested in one-night stands with people who are visiting Vegas for a couple days – that’s not interesting to me. If that’s what you’re going to come at me with, my response is going to be, thank you for the offer, but I’m going to pass. On my profile it specifically says, I’m going to school for this, this is what I’m looking for, I would like help paying for my school and my books.
Bottom line: The millennial generation has turned desperate with debt up to their eyeballs and it shows how this avocado and toast generation will do anything for a debt service payment.
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