By now, most Ohio millennial have graduated college and are getting ready to buy their first home, raise a family or start a business. However, around two-thirds of the millennial generation are paying back a significant student loan or another type of long-term debt. Therefore, it is important for them to learn strategies for getting out of debt and building a successful financial future.
The first step to getting out of debt is to acknowledge it. To get a clear look at the situation, millennial should take the time to list all their debts, including student loans, credit cards, car loans, mortgages and medical bills. Second, a budget should be created and at least the monthly minimum on each obligation should be met. Student loan debt should be made a priority. The faster such loans are paid off, the faster other financial goals can be met.
Experts also recommend that millennial learn the risk of debit cards. While they are convenient, they don’t offer the same purchase protections as credit cards. Some palces also place holds on debit balances that make funds unavailable until the transaction clears. This can cause financial conflicts. Finally, millennial should save as much money as they can for retirement and emergencies to avoid future debt.
Sometimes debt becomes overwhelming, and it becomes necessary to seek help. millennial facing financial challenges may find relief by contacting an attorney. Legal counsel could carefully review a client’s financial situation and recommend the best way forward. One possible solution may be to file for Chapter 13 bankruptcy, which will break debt down into manageable payments, allowing an individual to make a fresh financial start.
Source: WBRC, “7 Ways millennial can master the get-out-of-debt struggle,” Andrew Housser, Jan. 30, 2017