The Truth About Debt and MillennialsOct 17, 2018
Are you a millennial? Are you struggling with your personal debt, and feeling stressed out as a result? If so, you are not the only one. When it comes to non-mortgage debt, many Canadians report that they are carrying quite a bit, with millennials, in particular, struggling to deal with their personal debt burden.
These and other findings are part of our most recent Affordability Index poll. Focusing on how affordable living in Canada really is, it found that almost 37 per cent of Canadians don’t have enough money to meet their financial needs and end up relying on debt in order to fill in the gaps. In Canada, the average non-mortgage debt just under $20,000. As such, millennials, in particular, are finding it hard to get by, with one-third indicating that they feel overwhelmed by debt and are unsure how to find debt relief.
Poll results reveal that debt not only represents a roadblock for millennials now, but it may also cause issues in the future. As a result of a heavy personal debt load, many millennials report putting off other important financial priorities such as putting money away in a savings fund, saving up for a down payment to buy their first home or putting money away for the future in a retirement savings fund.
How millennials can deal with debt
If you are a millennial who is struggling with debt, there is some good news. Not only are their debt relief options available, there are also debt relief professionals, such as credit counsellors and Licensed Insolvency Trustees available to assist you.
The key to finding debt relief is to start focusing on your finances and building healthy financial habits now. Online resources are a great tool to help you establish healthy financial habits and get your money and debt back on track. Personal finance blogs, for example, provide a lot of useful information and helpful tips that you can utilize. Jessica Moorhouse’s blog is a great example.
The Government of Canada also offers helpful online information that millennials can use to increase their financial awareness and literacy. Topics covered range from managing your money effectively to managing your personal debt and finding debt relief.
One really important healthy financial habit you’ll want to develop (if you don’ t already) is creating and following a personal budget. Following a budget is also one of the easiest ways to stay on top of your finances. If you don’t currently have a budget in place, now is the time to start using this simple financial tool to monitor and track your spending. Although you could do it the old-fashioned way with pencil and paper, there are also high-tech options that allow you to create a budget and track your spending on your smartphone.