We’ve all heard the statistics; more Millennials live with their parents than with roommates. For Millennials, money woes are delaying marriage, house buying, and having kids. It’s no secret members of the Millennial Generation are struggling financially.
On social media, people often say Millennials and their problems are their own fault.
25-year-old Michael Wagner tells us he’s “having a hard time finding a job. I think the biggest problem we have as Millennials are student loans ’cause I’m getting hammered with eleven percent interest rates right now it’s just tough. “
Trends in Student Aid 2013 show that Millennials have taken 300% more student and credit card debt than our parents and that they’re half as likely to own a home as young adults in 1975.
The question is, are the chances of having a middle-class lifestyle out of reach for Millennials?
Paying off your credit card won’t happen until you control your spending. Experts say cutting the card is a good idea.
It’s tempting to look at the recession as the cause of all this, but Millennials have to make sacrifices and work with the cards they’ve been dealt.
23-year-old Kristin Owens says, “saving by living at home while working, so that was kind of an obstacle but not a huge obstacle.”
Business Development Officer at Widget Financial, Michael Williams, suggests tracking your finances and getting on a budget. He says it’s a ‘no brainer’ if you’re trying to manage your money better. “Refinancing some of those high-interest credit cards into a lower personal loan; other times it’s just you have to stop spending money you don’t have. It can be tough. We do financial literacy classes. “
The best student loan repayment method can be enrolling yourself into an income-based repayment plan, which typically sets your monthly payments at around 15% of your average gross income.
An emergency fund, even if it’s small, can reduce financial stress and help you feel more confident.
It’s important to learn the difference between loan consolidation, refinancing, and repayment.