Check out this graph from Insidehighered.com showing the growth of tuition and fees over the decades and see how costs are still increasing across the board. The growth is slower than other periods of history but it still is insufficient to keep on par with inflation! So as education costs increase along with overall living costs: what can millennials do to keep pace? In a recent study published on cheatsheet.com, they determined that:
almost 40% of Americans are loaded with credit card debt – with an average amount of $16,000 – and another 37% of the under-40 crowd have student loan debt, at an average of $40,000
So, costs are increasing all over and on top of the job market being all over the place – students and recent grads are also tasked to maintain high interest rate payments on credit card debt on top of student debt?! The #1 problem the turns a manageable financial situation into an insurmountable situation is…. wait for it… more debt. So the two best things people can do to avoid those situations is to:
- Create an emergency fund
- tackle on current debt
An emergency fund will help prevent having to accumulate more debt for that surprise car problem, medical scenario, etc. And paying down debt will help you avoid blowing money into the wind. Because paying interest while not hitting the principle feels a lot like that. We can help with the second which will help you do the first. If you are currently struggling with Student Loans please give us a call. There are options that can help you save on your payments and be able to pay them off in a shorter amount of time. Call us. We’re here for you.