The millennial generation has become synonymous with carrying debt due to rising educational costs and predatory lending practices. Getting out of debt can take decades if a proactive approach is not taken as paying off the minimum on a credit card can have a few purchases taking years to pay off. Poor financial habits can also lead to life events becoming impossible like that of purchasing a home. No lender is going to give out a mortgage if the borrower has defaulted on multiple loans or owes money to a variety of financial institutions. The following are tips that will help a millennial get out of debt although some might be tough to endure.
Create A Debt Payoff Strategy
Creating a debt payoff strategy is important as this is going to include the ever important monthly budget. Being able to estimate accurately the amount of money that can be put towards certain loans and extra payments that can be made can do multiple things. This gives a person motivation as they might finally see a light at the end of the tunnel in terms of getting out of debt. A strategy also can allow an individual to see where money is being waste if they look at the current expenditures when creating the monthly budget.
Move Home With Parents If Possible
Eliminating rent and other living costs can be a huge help in saving extra money to pay off debt. Most people are not going to let a person live with them for free, this is why moving back in with parents can be a game changing move. A lot of people tend to be embarrassed about moving back home but it is far more embarrassing to have student loans at age 50. If a person is offered a job by their parents they should take it until they find a better opportunity. Racking up debt when there are other options is unwise and can result in extra years spent in debt.
Find Supplemental Income Freelancing
Finding a source of supplemental income freelancing can be that perfect way to earn extra money during free time. This supplemental income can be extremely valuable even after getting out of debt. The money earned can be contributed to a retirement fund and allowed to grow tax free in specific accounts. There are plenty of opportunities to earn for all skillsets but there are certain skills that are valued far more than others. A person with the ability to do high volume sales can earn immense amounts by selling freelance. Find a good freelancing website and figure out how to invest for retirement on sources like Retirementinvestings.com.
Quit Drinking And Smoking
As mentioned above going out to dinner and having a few drinks can be immensely expensive when compared to doing the same at home. Quitting drinking completely can help in terms of health but it will also help in saving money. The ability to get up and be productive can even help a person earn more money. Far too many days are spent with a hangover for those that drink regularly. For those people that are smoking whether it is a vape or cigarettes are spending money to ruin their health. Find support to stop smoking as it can be extremely difficult as it is so ingrained in the daily habits of the smoker.
The younger generation can overcome the inflated education costs that in no way guarantee employment. Get out of debt as soon as possible and what life get that much better!