The Millennial Adults Are Not Far From Being Debt Free!
Millennials came to a world that was marked by an overall peace and happy environment.
The deadly war fumes that brewed throughout the 60s, 70s, and even the 80s, were getting dispersed.
The Cold War changed its corrosive course to something more rigid and silent, and even though it’s still persistent, it’s not that destructive. And, this is the timeline, when millennials were born.
I like to call the age of millennials a technologically advanced generation, that marks into a wide universal information access. More driven by the popularizing social networking era, and a global connectivity, defined as Internet.
Millennials are counted as the first generation to have the highest formal education of all.
But, it’s not as smooth as everything seems. Millennials grew up in a debt environment. A generation that can be said to be highly inspired by Arts, Aesthetics, Science and Philosophy, that don’t pay much!
For millennials, student loans and credit cards have become a common debt instrument, that they rely on through and through.
Nearly the whole millennial generation encountered student loans as the only mode of getting a formal education.
And, as of day to day costs, credit cards hit the market, captioned as millennial’s best friend.
It was then that millennials started to drown in debts.
An intelligent generation, that amassed huge consumer debts, and is currently deemed to have net worth much lower than the previous generations, notably the Boomers.
Still, where there’s a will there’s a way. The millennial’s determination and interest in paying off debts have initiated new strategies and tactics to manage debts.
Noticeably, this is a very smart generation, and needless to say their ways of managing debts are also unique and lucid.
This post is a tribute to those millennials who have come out clean of the debt mess with limitless (or should I say ‘limited’?) effort.And, dedicated to those millennials who are all ready and set, to break out of the debt cycle!
Hence, let’s get straight into the subject and discuss the ways to pay off debts, the millennial way!
The millennial’s greatest strength is the power of manipulating any object to an advantage:
When asked many of the university goers and young professionals (that make up the current millennial era), that what do they think of credit cards, there are many replies where they assert that credit card is a friendly debt!
They propose a theory that defines credit cards as a gateway to financial success. Many of them believe, that credit cards are designed to be clung onto for lifetime!
Sounds very unorthodox, but that’s the millennial take on credit cards. It’s the ‘Me’ factor. It is the attitude you can say.
Millennials are a stoned generation (No detailed talks on this please!), and they are cool. They don’t worry much, and believe in peace and serenity. Their adaptability is huge!
Probably, this calm state of mind is the millennial’s greatest weapon to fight debts. As I was just saying about the credit cards, millennials consider them as an important financial tool.
Their ways of paying off credit card debt, are different than the methods used by the other generations.
Many of the millennials believe that maintaining a significant amount of balance on their cards, is good.
And, to the surprise of all, it is quite true.
As, having a credit utilization ratio at a mark of 30%, is the best for your credit score.
They don’t want to completely get rid of the credit cards!
Majority of them aim to squeeze out the last bit of good juice of the cards!
They at times utilize credit cards to such an extent, that other banks are compelled to offer them more credit cards. Both traditional and balance transfer cards.
To be precise, both the millennials and the banks know, that having zero balance on cards is the most unfavourable condition for all!
But, this total carefree mentality, and optimum procrastination regarding debt payments, have done quite a bit of damage to the millennial’s personal financial health.
Theories that can be applied to credit cards and other revolving credits, may not function well with secured debts and for an asset building portfolio. And, that’s why millennials have an overall decreased wealth stability.
Still, bright days are not far away though.
Many millennials believe in taking help of professional debt relief options:
With the rise of so many debt help communities and debt relief companies, millennials are the current generation to make full use of them.
Millennials are intelligent to understand that most of goods bought on credit, depreciates in term of value with time. This is obviously not the case for home loans, or car loans though.
So, having this practical aspect in mind, millennials have taken into consideration, that if they buy a Macbook with their credit card, then they can easily settle that debt 2 years later, with help of good debt settlement programs.
The millennials know very well, that a Macbook costing $2K now, will be half its value after one year itself.
There’s no fooling the millennials, you can be sure about that.
They might be soft spoken, they might not like the crazy wars and shooting people, like the days of the silent generation and the boomers, but they are just another step ahead of the punky and groovy Gen-X!
One way or the other, this is the complete generation that came out of the people from the psychedelic age! And, yes, millennials do think a bit drifted!
Therefore, we can be well assured that the millennials are probably taking a peaceful 4:20 o’clock stroll, while we are busy figuring out ways for them to pay off their debts!!!
And, once they start to get calls from the creditors, all they will do, is just make a call to a reputed debt settlement company!
The deadliest issue of all, is the student debt of millennials:
As mentioned at the starting, along with credit cards, another damaging factor is the student loan debt, for the millennials.
This student debt has only seen an increase, since the millennials came into the consumer market. Although student debts are considered to be good debts, because of the huge career opportunities, but big amounts of them (that too when one is facing unemployment or low salary) can become a great deal of harassments.
Student loans have a thin chance of getting forgiven, and only federal student loans can get cramped.
As of private loans, settlement and consolidation companies can be of some help.
It is better you talk to a financial advisor, face to face, if student loans along with other big debt amounts are really bothering you.
The present student loan debt situation is the worse, this country has seen!
Hope millennials will see some easy way out of it, like they have figured out other household debt payoff strategies!