If you are a millennial or have talked to one, the subject of money has likely come up. Not in the “we have a ton of it, yah!” way—the crushing debt way. Reports indicate that four of every ten millennials identify debt as overwhelming, saying it is their largest financial worry. 56% say that they’re living paycheck to paycheck as well.
More women than men (45% as compared to 33%) feel overwhelmed. Around 60% of men are saving, while the numbers for women are just over half. Pay inequality may account for this.
But they’re learning—80% believe that the economic recession has taught them to be wary of future economic problems and so they know they should save. Part of the problem is that almost half are allocating their paychecks to pay off different types of debt.
If the debt was limited to mortgages, Jason Hartman would celebrate! Unfortunately, it is debt related to credit cards, student loans, auto debt, medical debt, and a few mortgages.
Millennials are an optimistic bunch, though! 72% say they feel good about being able to save enough for the future, though the numbers are much lower for women. Part of this optimism might be because 40% have absolutely no idea how much they’ll need to save in order to retire.
Obama’s executive order says that repayments will be capped at 10% of income and any balance that remains after 20 years will be forgiven—5 million people who accepted loans before October of 2007 will be affected.
Crushing debt isn’t fun and it certainly isn’t healthy—every hardworking person deserves a shot at the American dream. If you’re among the millennials experiencing such a burden, there are a few things you can do to help yourself out of this mess.
Take advantage of good debt and look into income property investment. If you can come up with a down payment, it’s a great way to make enough money to cover more than just your basic expenses. You can do it while you’re working other jobs and begin building wealth for your life and then your retirement years.
If you’re interested in taking a look at more numbers, check out the full survey—a Harris Poll conducted on behalf of Wells Fargo.
Are you a millennial who identifies with the statistics in this post? Share your story with us below.
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The Young Wealth Team