Will Millennials Need Debt Relief More Than Their Parents?
It’s often quite difficult to find financial articles that would present millennials in a favorable light. The financial considerations of the average millennial generation are often outside of the normal financial experts and the idea of debt relief is now quite a hot topic.
Adults ranging from their late 20s to their early 30s have some unusual spending have and their needs for personal finance are definitely very different from what their parents were. According to financial experts millennials are very likely to be in the same financial forecast as many baby boomers over the next few decades. This is a direct conflict when compared to many of the financial reports that would estimate millennial’s to be financially irresponsible when compared to other generations.
It’s estimated that many millennial’s place a lot of priority on their financial security. Many millennials actually value their financial security just as much as their parents or grandparents. In survey data that compared millennial’s to baby boomers it was estimated that both generations were prioritizing investing and saving to the same degree. What is the most surprising is the different opinions regarding travel. It’s estimated that in this survey only around 3% of millennials would be using their money for travel whereas 7% of baby boomers would prefer to use their funds towards traveling.
Where millennials and baby boomers differ comes down to their current debts. Credit cards remain one of the largest sources of debt for millennials with 40% of millennials reporting credit cards to be their largest source of debt. Most millennial’s that are carrying debt report an average of $27,000 in personal debt that they are carrying. Even though baby boomers are a little bit more respectful in paying down credit cards and other major expenses, it seems as though financial priorities remain in the same place.
Debt relief from the form of credit cards is usually one of the easiest types to seek. Working with a debt relief lawyer or applying for bankruptcy can be one of the easiest ways to manage debts over time. If you are a younger individual managing a credit card debt it may be wise to consider speaking to a bankruptcy lawyer or to a debt relief professional in order to start managing your debts. Even doing a balance transfer to a credit card with a lower interest rate could help to save you hundreds of dollars every month.
Student loans are often one of the largest types of debt that become reported for millennial’s. There are a large number of articles surrounding the idea of debt relief related to student loans and related to education based funds. Even though there are debts associated with student loans, these are often debts they contain very low interest rates. Debt consolidation and relief is also a little more difficult to obtain for millennial’s when they start to take on student loans. The process of bankruptcy may not protect millennial’s in the case of a debt relief situation when it regards a student debt.
What’s even more surprising about the credit card debt that many millennial carry is that they don’t know how expensive it is. Around 22% of millennials that were surveyed did not know the current interest rate on their credit card. Roughly 34% of Americans that carry debts do not know how much of their monthly income they’re actually placing towards paying down their debts. Just understanding how much of your income is actually going towards interest payments and how long it may take you to pay off the debt could be all of the discouragement that you need to stop loading up a credit card. Spending now versus saving later is a struggle that many people face and millennials seem to be willing to spend now while also placing an emphasis on saving later.
Even millennial’s that have managed to land excellent jobs after their education will struggle with debt. In recent surveys from DA Davidson it’s estimated that a third of millennials that were employed and carrying at least $250,000 in investable assets estimated that they would retire with debt.
The bottom line is that anyone could experience benefits from participating in debt relief. If you carry a large amount of debt and he feels insurmountable, you should strongly consider working with a debt relief professional to help you out of the position that you’re in. Finding ways to manage your debt or even discover a solution to your debt could make sure that you can have a healthier financial picture for the future.
Even if you’ve been labeled in the millennial generation and you feel as though you place emphasis on saving for the future, remember that not all the news is bad and you may not have to follow in the footsteps of your parents. It is possible to find debt relief and buck the trend many millennial’s face as being labeled as financially irresponsible.
Contact us today for a free consultation on how we can help you get out of debt!