Why So Many Young People Are Struggling with Debt

In today’s time of inflation, loans have become very normal for people, especially for today’s new generation, debt has become a new friend of their life which is not leaving them alone. Including student loans, credit cards, high cost of living, unnecessary expenses, lack of financial education, lack of budget, today’s youth are suffering from it. In today’s blog, we will discuss those factors and learn how we can remove the loan from us and live a debt-free life.

reasons for young people’s debt struggles:

Rising Costs of Education

In today’s time, the reason for the youth taking loans is the education sector. In today’s time, taking education has become very expensive and necessary and because of this education, many students have to take student education loan to graduate and do tuition, but they do not know that this loan will turn their future into a debt life. When a student takes a loan, he thinks that when he will study, he will get a good job, but due to the high interest rate of education loan, after getting a job, they are not able to do anything in life and they have to repay the loan of that money, due to which their life is getting very deep and for this reason, today’s people have loans on them.

Living Costs Outpace Wage Growth

In today’s time, the expenses that we are making have become very expensive. It is becoming very difficult to meet the expenses of housing rent, loan and tax, goods items, hats, straw, transportation etc. because when a person takes up his responsibilities, his salary is still in the initial stage, due to which he has to take help of credit for his normal expenses, due to which he takes a loan and many people go to the city in search of work, due to which the house owners of the city increase their rent, due to which many people face a lot of problems.

Credit Card Debt and Easy Access to Credit

Nowadays, the reason why many people have loans is because of the credit card system. When a new person gets a credit card, then when he swipes the credit card, due to lack of education in finance, he does not know how high the interest rate is, how much payment has to be made with it, when it has to be made and the second reason is that credit card access is available very easily, this company is giving credit cards very easily to the youth because they know that today’s Youth will enjoy their life by taking loans, due to which they get into loans.

How to Address the Debt Crisis Among Young People

Increase Financial Literacy: If we want to deal with this, we should get finance education and give it to our younger brothers and friends so that they know how to make their budget, and also provide finance education in schools, colleges and workplaces.

Build Emergency Funds Early: We were created to secure ourselves so that when we need it, we can expand; and; a contingency fund can save us from loans; and even if we have a loan, we should keep a fund to secure ourselves so that when we need it, we can expand

over spend habbit ; In order to secure our lives, we should not waste money without any consideration so that when we want to save money, we can save it. We should have good habits so that we can secure ourselves.

Having loans is a matter of great concern for today’s youth. Rooted in a combination of rising costs, low wages, education loans, life is becoming very difficult. If we have to deal with it, then not we alone but the whole society will have to come together and the youth will have to be informed about loans through financial education.

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