Credit card debt is one of the most pervasive forms of debt in American society. One survey found that 32 percent of people with debt would give up their favorite snacks for at least one year, and 31 percent said they would give up social media for a year to finally be debt-free.
Although anyone can fall into credit card debt, it seems to affect millennials more than any other demographic. The problem has become so severe that many millennials are unable to purchase new cars and houses due to the immense debt they face.
How did this happen?
While credit card debt does tend to run rampant, it is also important to consider the impact of increasing student loan debt. Many young adults require loans to attend college, but once they graduate, they are unable to make a sufficient amount of money to pay back those loans on time. Starting salaries are also to blame. Even with a bachelor’s degree, many millennials still only end up making barely over minimum wage with their first jobs.
As a result, millennials may resort to taking out credit cards to pay for essentials, such as food and utilities. This means many people end up living beyond their means, and not only are they unable to pay off the student debt, but they are unable to pay off the new credit card debt.
It is important for millennials, and people of all age groups for that matter, that there are options for getting out of debt. It all starts with creating a budget and making sure people do not spend more than they receive in income. For getting rid of student loan debt, it would be helpful for recent college graduates to remember there are jobs that provide student loan forgiveness. Student loan debt can completely go away after working a certain number of years at a company.