For many millennial’s it feels as though the debt is overwhelming and they are drowning n it. Struggling financially and living paycheck to paycheck was not something that many millennial’s saw in their future as they graduated from colleges across the country. But the reality is that they are struggling with not only student loans, credit card debt but also lower than anticipated salaries.
Student Loans – With the average student loan debt being around $30k it’s no wonder that Millennial’s feel so financial strapped. Attending college isn’t what it used to be when you know that you have to face a huge loan re-payment upon graduation. Couple that with the fact that the job-market is still trying to recover and all the while your student loans are accruing interest. But still constant is the fact that individuals with a college degree have more employment opportunities than those without a degree. Just remember to shop around before making your educational decision. Think about not just what you want to do in future but the cost associated with doing so.
Credit Cards – The sad part about credit cards is that is used properly they can be used for a great many things including vacations and luxury purchases. Unfortunately, Millennial’s are more into spending money they don’t have to do these things which further increases their overall debt. This isn’t to say that some credit card purchases don’t end up being hospital, automotive and unplanned bills, but more often than not credit card debt is due to poor financial decisions.
Lack of Financial Knowledge – There are so many areas of finance that it can ultimately seem overwhelming to understand it all. From savings and debt, to 401ks and IRA’s it can be daunting to know what’s important when thinking about your financial future. Being overwhelmed by debt also doesn’t help the situation because one is left with a sense of not know what to do, or who to ask for guidance. Learning about ones finances is not done in a day it happens over time with much research and conversation. I if you think that you might be in need of some financial guidance start here with some of our A+J Finance Posts or CNN Money.
Image: CNN Money