What makes millennials stay stuck to the debt trap?
--Nicholas Green (Author)
The age cohort that I am talking about is very pivotal, in shaping the world as it is now.
This generation made many significant changes to the way humans got civilized. They redefined the way we think and act, and are still doing so, with their highly innovative take on Arts, Science and Culture.
This generation is what we refer to as the millennials. A very very important age group to speak of. They deserve a lot of attention, for the work they do in improving several sections of the society, and the world as a whole.
But this generation is suffering! Their suffering is marked by unputdownable credit card debt, hefty student loans, and toughened secured loans like mortgages or car loans!
That is the debt pressure, which this millennial generation is facing. The biggest concern for this generation is that no matter how hard the millennials are trying, most of them can’t escape this debt mess.
The reasons are many, and those are what we will be discussing in this post. It doesn’t really matter whether or not you are a millennial yourself. You should read this post, as nearly everyone in the earth, knows a millennial or two. Be it themselves or some from their family or friends.
Therefore, let’s hit it straight on the topic, and see what makes millennials stay stuck to the debt trap.
The progressive lifestyle:
You knew this was coming, right?! If not, then there’s no need to get surprised. Millennial lifestyle is really something to both admire and detest at.
The millennials believe in strong memories and life changing experiences, rather than just stacking money and wealth in a vault, for a smooth future!
They are ready to explore the world, party till they drop, and express a hedonistic attitude toward everything. That’s good, I mean really good, because what life have we led, if we never have any extravagant real stories to speak of?!
But, the biggest financial problem is lurking and smirking, hiding in the mist of such a speedy lifestyle. In contrast to the responsibility factor of Gen Xers, and Baby Boomers that came due to their participation in outraging wars, and civil riots, needless to say most of the millennials have spent a childhood of financial peace! The parents of millennials are mainly Gen Xers, with little percentages of Baby Boomers and Millennials itself!
Thus, many millennials are still going on about their life without getting bothered about high end expenses, and their consequences. This careless attitude of millennials came up with age. They grew up relying on their parents so much, that many forgot the essence of financial responsibility.
Still, a good number of millennials are all set to rectify these mistakes, and are now more focused on saving money, and clearing debts.
A life full of heart throbbing memories, is really very good! But, does that mean, one should sacrifice all the wealth and financial stability in the course of achieving such unprecedented freedom?
Think millennials think. You need money to party, you need money to go to places, and you need money nearly for everything. But if you want to say, that you rely more on love, compassion and relationship, then best of luck finding such people, in this modern world!
Millennials were born to see credit cards and student loans:
The millennial era is marked by the advent of credit cards, and the heavy use of these cards.
They are living in a world, where credit cards have become the most convenient mode of purchasing and shopping. This is what made the difference between Millennials and the previous generations.
Credit cards carry one of the highest interest rates, in the field of debts and credit. These cards are meant to fuel up a person’s spending behavior, due to the easy swiping and touch facility.
Millennials have ultimately fallen victims to this debt trap. On top of it, we have not yet even started to discuss about home loans or car loans.
And, needless to say, student loans have entered into the lives of millennials in the shape of sticky nightmares. Nearly every second millennial is carrying a heavy student loan burden, as college fees started to rise, as millennials hit the education scene.
‘Student Debt’ has peaked up so much, that as of 2018, student loan debt stands at $1.5 trillion. Complete data and facts of 2019 are yet to be declared.
Even financial advisors admit, that it is really difficult to cope up with student loan debt, and credit card debt, at the same time. And, millennials are helpless, believe it or not.
Millennials are not smart in paying off debts:
If you think, that debt payments only deserve a good pay off amount, then you are wrong. One needs to chart out a budget, arrange the debt payments, cope up with the interest rates, and if required then search for different ways to consolidate debts.
It is mandatory that millennials start to seek professional debt advice, and erase their debt problems forever.
A good debt consultant will always help to negotiate with creditors and lenders to reduce interest charges, penalty fees. and/or the original debt amount. Hence, one should take help of it.
Millennials are, without doubt, a very intelligent and creative generation.
It is very unexpected to see them in such debt mess.
It’s time they should take up some serious steps to come out of the debt trap. We are counting on you millennials! Make us proud!
The above article was a contribution to 3 Trails Financial by Nicholas Green, who is not an employee of 3 Trails Financial. The statements within this article are that of the author and do not necessarily represent the opinion of 3 Trails Financial. Thank you Nicholas for your contribution.
At 3 Trails Financial, I will work with you to develop a plan on how to escape this debt trap and never go back. Contact me today to schedule a free 30 minute discovery appointment. Your time and the outcome will be well worth the investment....if you are willing to put forth the effort.