Debt issues start early for many young people
We have mentioned in previous blogs that debt is not typically something that accumulates all at once. People often struggle with a number of different financial challenges over the course of several months or years before money woes ultimately become unmanageable.
However, while debt doesn’t usually happen all at once, it does start affecting people’s lives early on. In fact, debt can start accumulating for many people before they even get their first job.
To begin with, it is very common for college students to partially or completely fund their education by taking out student loans, which can prove to be extraordinarily difficult to pay off.
Even if student loans are small or under control, young people may also start accumulating debt when they graduate and have to do things like get an apartment, purchase clothes for a new job, and start paying living expenses. Many people end up putting some or all of these expenses on credit cards, starting a cycle that is difficult to break.
Between credit card spending, student loan payments and difficulty finding jobs that pay enough, young people can struggle enormously when it comes to financial health. Additionally, as one 34-year-old entrepreneur notes in a recent article in Forbes, the loans that young people do need to take out often come with high interest rates because of an absent or lacking credit history. The article also notes that improving credit scores can be very difficult for young adults, as prompt payment of certain things like rent are not considered.
What all this means is that there are a number of obstacles that young people face when it comes to working toward financial stability and health. In many cases, this situation only gets worse over time. Even though people can’t undo the mistakes they’ve made in the past or go back in time and make different choices, there are ways to deal with current debt issues by speaking with an attorney and exploring debt relief options.