Today’s Youth is all about a happy go lucky lifestyle. They are more of “living in the moment” kind of people rather than the future fearing people. Thus, the millennial trend is to spend the maximum proportion of the earnings to satisfy current needs and desires, and giving lesser significance to the “saving for the future” ideology. As a result, most of the times the earning youth is seen spending even more than what they earn in the quest to lead a lavish lifestyle.
Spending More than Earning, Landing Up in A Debt Trouble
As mentioned above, there’s a prevalence of a pro splurging culture in the society. And as a consequence of this culture, the rate of debt taking, especially among the youth, has seen a whopping increase in the previous decade or two. People are taking debt for anything and everything right from the necessary purpose like students education loan, to another secondary purpose like housing loan, car loan, etc. Besides, they have also increased the use of credit cards more often while expensive shopping, which again, is an example of thinking about the present needs and not so much about the enormous bills that will have to be cleared in the future including the accumulating interest.
All these factors take such financially careless population towards a dead end of the heavy debt crisis, where they are left with nowhere to go but to keep repaying the debt. And there comes the point where the overall amount to be cleared is so much that it becomes nearly impossible to settle. All of these have a serious problem in developing your finances, and ultimately causes a lot of stress.
Debt Consolidation Enters Into The Picture
When you are facing a similar situation as mentioned above, i.e., strangled by large debts to be settled, you can give Debt consolidation a try. Debt Consolidation is a single big sized debt that you take to settle of all your multiple existing debts. It is widely preferred by people mostly because of the obvious lower rate of interest that needs to be paid as compared to the higher rates of interest payable on the existing debts or credit card dues.
Although there are certain complications involved in obtaining a single big consolidated debt, the after effect of taking it is quite amusing, especially when your debt woes are worse. Debt consolidation can without a doubt provide you with greatest body assistance in budgeting your personal finance, while you’re dealing with debts. To systematically plan your only big debt to resolve the multiple debts problem, all you must do is go through different debt consolidation reviewsavailable over the internet in the form of articles and blogs written by finance experts and analysts.
The Benefits of Debt Consolidation to help you manage Your Finances During Debt Crisis
Caution while Debt Consolidation
Although Debt Consolidation has a lot of plus points, there’s a lot of flak around it lately because of some underlying complications. The most important thing to consider is the credit score implications. This is because, the rate of interest charged on the consolidated debt you borrow, is lower only if your credit score is good, i.e., close to around 700.
Another important thing is what type of debt consolidation you are going to adopt. Because if your debt consolidation plan involves making lower installments but for a long period, then it is obvious that even if the rate of interest is less, the final accumulated amount will be more. So you must calculate all these things in advance beforehand.
The millennial generation is all about living life in the present. Therefore what you get to see more often is more free-flowing expenditure on all sorts of desirable things to lead a lavish lifestyle. But being careless about rampant expenditures without any thoughtful approach towards the future has drawn today’s youth in a vicious debt cycle. They’re using credit cards every single time for shopping and other activities, and they are taking debt for major expenditures of which some are not even required.
As a result, they land up in a huge debt crisis and find no way out. If you are facing a similar situation, you can do debt consolidation as a last resort. It involves merging all your bills and debts and settling them at once with a single consolidated debt. It saves your interest and other costs, makes the settlement easier and also helps you properly figure out your monthly budget.
Member since: 30th January 2018
Mandy Bular is a freelance content writer. She has written many good and informative articles on different categories such as technology, health, fashion, education, career, travel etc. She is a featured...