Depending on your financial situation, you may not need to get anything out of debt. You just might be made in the shade with pink lemonade. But for the rest of us, it’s a different story. Whether you have a toe in the debt pool or you’re drowning in it, debt is not your friend. It’s not fun. And no matter what anyone says, promises, or tries to tell you, debt will not make your life better.
This is particularly true for what has been called the grab-it-now-pay-it-later generation known as Generation Y. According to the National Foundation for Credit Counseling (NFCC) only about 58% percent of Gen Yers pay their bills on time.
And it’s no wonder! It’s hard to pay your bills on time when you can’t find a job. About 37% of 18- to 29- year-olds have been underemployed or out of work during the recession (Pew Research Center). As a result, 60% of workers 20- to 29- year-olds cashed out their 401(k) plans despite the penalties.
Not good signs. Add in that the average millennial is graduating from college with $23,200 in student loan debt and 20% of twentysomethings carry more than $10,000 in credit card debt (USA Today, April 23, 2010).
If you’re feeling the pinch of debt, you’re not alone-no matter what your age, stage, or generation.
But here’s the good news. You can get out of debt. You may have to take a job you don’t like. You may have to master the art of cooking and preparing a $3 meal (which can be surprisingly tasty). You may have to make some crazy concessions, but if you are committed to getting out of debt, you can do it.
How do I know? Because I’ve seen people do it time and time again–often more quickly than they imagined when they get serious about it.
One of the most profound examples of this is my husband, Leif.
When we first met he had just under $17,000 in student loan debt which he made minimum payments on for over 5 years. After he asked me to marry him, I said yes, but on one condition: by our wedding day, he had to have the loan paid in full. If he still owed money, I would not say “I do.” That may sound harsh or cold, but I’d read one too many studies that showed finances are a major contributor to marital stress and divorce.
Leif demonstrated how much he cared about me and our relationship. He moved back in with his parents. He changed jobs from Alaska Airlines to a much higher paying job with the Transportation Security Administration (yes, the bleep bleep you hear at the airport). He made a lot of sacrifices including pizza-less Saturday nights and riding a bike to work. But at the end of the year, he was completely debt-free. He even paid for a small used truck, and my wedding ring. We married with nothing. But in today’s world, zero is huge.
Since then, we’ve worked hard to keep our BLEEPS out of the debt pool and we work hard to get out whenever we slip back in.
We still have so much to learn when it comes to finances, but we’re convinced that debt-free is a great way to live. We have a circle of friends who share similar stories and we keep encouraging and celebrating together when a credit card or loan or mortgage is paid off.
We invite you to join in and develop a passion for debt-free living.
*Photo courtesy of here
