Many Millennials Are Facing Overwhelming Debt
Millennials can’t seem to catch a break. The generation born between the late 1980s and the early 2000s often gets ridiculed in society as a group of carefree hipsters who love the latest tech innovations but loathe work and real responsibility. Even if they can shake off this unsavory reputation, Millennials all seem to agree on one issue: they’re finding themselves drowning in overwhelming debt, with no clear idea on how they can possibly pay it off.
What is Burdening the Millennials?
One of the biggest factors of the Millennial generation’s debt is student loans. College tuitions have been on the rise, making schooling almost impossible to afford without getting financial aid. Often, Millenials borrow more than what their tuition costs so they can also purchase classroom items like textbooks or a laptop. As a result, Millennials not only graduate with student loan debt, they have higher debt than other generations, and the amount they owe is often disproportionately higher than the salaries they earn at their first post-college jobs.
While student loans are clearly a major issue, they are not the only debt weighing Millennials down. Millenials have more long-term debt than older generations had at their age. Much of the debt that is not owed to student loans can be attributed to car loans and mortgages, but one of the biggest sources is credit cards.
How to Avoid Getting Overwhelmed by Debt
Having bills that you cannot afford to pay off will just lead to more debt, and before you know it, you’ve fallen into an overwhelming debt cycle. But you can try to head off this cycle before it happens by avoiding some common pitfalls. First and foremost, keep your expenses as lean as you can – maybe hold off on moving out of Mom and Dad’s house for a few years so you can put all that rent money towards paying off your debts.
Because credit card debt can have such a negative impact on your finances, it’s a good idea to avoid it as much as possible. Get only one credit card, make affordable purchases on it and pay it off every month. The flashy new clothes and top-of-the-line technical gear can wait a few years until you’re making a better salary and you owe less money to your creditors.
If you're a Millenial and in need of financial help, contact our office today. We will explore all debt repayment options and come up with a plan that is best suited for you.