It is no secret that Millennials have a bad reputation when it comes to debt, spending, and personal finances. While there are many disputed reports concerning exactly what defines a Millennial, in general Millennials are the generation born in the late 1970s and end in the mid-1990s.
This generation has come of age in a world of financial uncertainty, a shrinking job market, and higher college tuition rates than ever. Because of this, there is a pretty common stereotype that Millennials are not as financially savvy as their Baby Boomer parents, and in fact, nearly 20% of Americans ages 18-24 qualify themselves as being in some sort of debt hardship. So if you are a Millennial and are in need of help managing debt here are some tips that will help you take charge of your debt and finances.
Know exactly what you owe
While it can be tempting to just shut your eyes when it comes to paying bills and student loan payments, it is important to be certain of where you stand financially. Take one night to sit down and calculate your debt, and from there you can go on to make a budget. Knowing where you are when it comes to your finances will make it much easier to stick to your budget and manage debt in the long run.
Say no to subscription services
These subscription services are so tempting but chances are you aren’t really using them to their full potential. So cancel them for a month and take note on what ones you miss and utilize the most. Only subscribe to the ones you really use, and then put the money saved on other subscription services into a saving account. You’ll most likely be able to save hundreds a year without even making a huge impact on your lifestyle.
Cut down the credit cards to just one
As nice of an offer they may be, you don’t really need more than one credit card. Only having to deal with one card with one spending limit will be the push you need to knock your finances into shape! While it can be hard to cut the cord, you will be able to say goodbye to all those high-interest rates and monthly payments. If you have any questions, consider credit counseling.
Millennials, keep your eyes peeled for our next blog installment on how to manage debt properly!