Statistics show millennials are racking up debts at rates not witnessed with other generations. In the US, millennials are a generation of people born in 1981 to the year 1996. According to a new Business Insider report, as many as 51.5% of millennials have credit card debts weighing heavily on them. Out of this number, 18% owe debts amounting to more than $10,000. It has also been revealed that the credit card problem ranks higher than the student loan burden. The growing debt problem is attributed to various factors, including the high cost of living and stagnated incomes.
The millennials generally have a lower purchasing power compared to the other generations measured at the same age bracket. The income earned by people age 25 to 34 in 2017 stood at an average of $35,455, which was only about $30 higher than the figures analyzed back in 1974. Millennials tend to spend a bulk of their income on rising housing and tuition costs. The situation is causing many to turn to credit cards to finance everyday living expenses. The other expenses include traveling and payment of bills like utilities, insurance, and gas.
The solution to the credit card problem
From an expert perspective, the credit card problem among millennials is exacerbated by high interest and unyielding incomes. One of the solutions being is debt consolidation. According to Yahoo Finance, Online debt consolidation programs have made it easy to roll debts into manageable loans. The characteristics of the new, consolidated loan include reasonable interest rate and shortened payoff period. The debt market is replete with many lenders willing to come out and help. When applying for a consolidated loan you can take advantage of the following:
• Easy online application to save time
• Extended loan offers to minimize the risk of default
According to US News & World Report, the other tested solutions to credit card debt include searching for new income streams, scaling back on credit card usage and speaking to your credit card company to negotiate reduced minimum payment and interest rates. You can do so by speaking to the credit company supervisor or a hardship department manager. Remember, scaling down on using credit cards may mean giving up the benefits such as loyalty programs. Although the decision may be painful at first, it can go a long way to ease the debt problem.
Get a local debt counseling service you can trust!
Debt counseling companies can help you get your debt and finances in order. The debt manager will start by setting up a credit management plan that fits your financial situation. White Mountain Partners is a trusted debt management firm that offers debt refinancing solutions, and debt counseling services at highly competitive market rates.
Whether you are an individual, small business or startup reeling under high-interest debts, White Mountain Partners is here to help. The company has an experienced team of skilled debt experts and counselors who understand the dangers of maintaining an unsustainable debt portfolio. For quick consultation, visit the company website or call to speak to a friendly representative