According to the GoCompare ‘generation debt’ report, almost half of people aged 18 to 25 have debts other than student loans and mortgages with the average person owing a whopping £3,109. This is extremely alarming considering the ages of those surveyed and how hard money can be to repay unless the right advice is sought – but is there a solution to young people’s financial troubles?
Borrow to pay off your debts
While there’s much doom and gloom surrounding debt, there is light at the end of the tunnel in the form of debt consolidation. Companies like Avant UK provide low interest rate loans allowing those in financial difficulties to pay back the money owed to multiple creditors all at once – without having to worry about setting up numerous Direct Debits or getting in a muddle with final notice payments.
Of course, the ‘borrowing to pay off your debts’ approach is not for everyone, but with interest rates kept to a minimum and reputable companies offering sound debt management advice, it is certainly an option to consider when getting back on your feet.
Get free debt advice
The troubling thing about debt is that it can quickly spiral out of control, particularly if you stick your head in the sand and fail to tackle your issues head on. Being without money is not a particularly pleasurable feeling, in fact, it’s been associated with anxiety and depression – but it’s crucial to remember there’s always a solution. No matter how bad your finances have got, you can completely or partially lighten the weight on your shoulders by seeking free debt advice from the likes of StepChance, National Debtline or Citizens Advice.
In other words, never suffer in silence. There is always someone who will listen to you be it a loans company or a charity, so do all you can to get your bank balance back on the straight and narrow.
Assess your spending habits
It’s one thing falling into unavoidable debt; maybe you earn less than you have to pay out and are forced to use your overdraft. It’s another, however, to overspend on luxuries and unnecessary things then complain you’ve no money. So, to avoid making silly mistakes and getting caught in a cycle of poverty, take the time to assess your spending habits and make cutbacks where needs be. If you buy lunch out every day at work, for instance, perhaps try making a sandwich before you leave the house. Just £2.50 a day on snacks can work out to around £50 a month if you’re not careful showing how it all adds up.
Make the most of money-saving apps
Sometimes, youngsters get into debt by accident. Perhaps they withdraw too much money from the cash machine and enter their overdraft or perhaps they make a one off credit card payment only to misjudge how much they could realistically afford to repay per month. To prevent these mistakes from happening, try downloading the best money-saving apps out there which will help you monitor and track your accounts on a daily basis.
It’s clear that many young people are struggling financially but there are ways to reduce debt significantly, if not completely, so it’s worth sussing out all the above options and more.
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