Millennials in Louisiana and elsewhere have a rough go at earning a living wage and staying out of debt. While some may consider filing for bankruptcy to keep their heads above water, it is also a good idea to trace the original source of debt.
The Washington Examiner explains one major root cause of debt for millennials. Learn how student debt, and another source of financial strife, can make life hard for younger generations.
The massive cost of an education
For many millennials, the enduring cost of earning an education eats up a great deal of their income, making up roughly 10% of their full household debt. Some may be under the impression that younger generations are just bad with money, but the truth is that the cost of education has risen tremendously in the past decade. Millennials saddled with massive student loan debt often have a harder time buying homes of their own, getting married when they want to and starting a family when they want to.
Going into debt because of debt
The second biggest sources of debt for millennials is credit card debt, notes CNBC. What can happen is that while millennials may land good jobs, as a result of going into debt to afford the education necessary for a good job, the cost of overall living expenses quickly eats up a lot of that salary. Some millennials have no choice but to use their credit cards to pay off bills, which only exacerbates their financial woes.
Besides focusing on ways to wrangle debt under control, such as filing for bankruptcy, millennials also need to focus on putting money into savings. When done right, the compound interest on savings far outstrips the growing rate of low-interest credit card or student loan debt.