Student Loans VS Credit Cards VS Auto Loans VS Others

Two biggest takeaways from the chart below of student loans vs credit cards vs auto loans, vs others:

1) Well first off the overall debt market is growing and nearly doubled in 13 years going from about $2 Trillion to $4 Trillion.
2) Most of the increase can be attributed to student debt which was the smallest in 2004 and now is currently the largest segment of debt.

The student debt market is only second to the mortgage market. It has been a growing problem and has existed for over a decade. Currently, the solutions aren’t sufficient as default rates continue to rise. Luckily the student debt market profile is very uniform: young, educated, and obsessed with social media. With that, Alchemy is taking a unique approach and using the recent invention of blockchain combining it with AI and machine learning to break down default risk and other financial metrics of pricing loans based on users social media.

As Albert Einstein said — “We cannot solve our problems with the same thinking we used when we created them.”

The application of this technology is currently targeted at a relatively uniform market to prove the business model but will be expanded into more diverse debt markets once proven.x