Solutions For Millennial Debt

Millennials – those born in the 1980’s and early 1990’s – account for the largest working generation today, yet they have been unfortunate to enter one of the toughest job markets in recent history.

A good number of millennials got their first post-college jobs around the time of the 2008 Great Recession. This period saw a lot of millennials struggle with unemployment, which added a lot of pressure to young people who were already struggling with unprecedented levels of debt (including student debt) whilst trying to attain the same level of wealth that was achieved by previous generations.

A decade later, there are increasing job opportunities in various sectors for those who enrol in the right courses. However, many are still struggling with debt. Studies show that despite millennials being highly educated, they earn about $4,000 less than people who were the same age 15 years ago, plus they leave school with an average of $35,000 in student loans, in addition to credit card debt and other consumer debts.

So, how can millennials free themselves from debt?

1. Debt counselling

   This is a great option for millennials in debt to achieve financial freedom. The process is regulated to protect the client from creditor harassment or the loss of important assets. Your debt counselor negotiates can discuss options for a more favourable payment plan with your creditors such as a proposal.

2. Debt consolidation

   If you are servicing debt from five or more credit cards, you may consider joining these debts together so you only have to pay one creditor every month. Debt consolidation is a suitable option regardless of whether or not you are making your payments on time.

It takes a lot of mental effort to keep track of multiple monthly payments. Debt consolidation allows you to make a single monthly payment at a reduced interest rate without the hustle of multiple creditors reminding you to make the payment on time. This can also reduce or eliminate interest payments such as when you file a consumer proposal.

Final note

These solutions lead up to a single ultimate goal – getting you out of debt. The sooner you make the decision to work toward financial freedom, the sooner you can qualify to buy a home, improve your credit score for low-interest borrowing, and enjoy a debt-free life.