- Dig Your Way Out of Debt
Young adults are in deep trouble. Referred to as "Generation Broke," young adults and college kids are facing big financial trouble and are "in the worst financial trouble in more than a generation: New college graduates face the highest unemployment rate in 25 years, record student loan debt (and record defaults), prohibitively expensive health care costs and average of $4,100 in credit card debt."* But, if you make a couple of changes now, you can dig yourself out of debt:
- Add it up.
It seems daunting, but you're better off knowing where you stand. Get all of your bills together and do the math. - Check your credit.
Did you know you can get a hold of your credit report for free? Go online and visit AnnualCreditReport.com (877-322-8228). Once a year, you can get a free credit report. It's the best way to make sure you're in good standing. - Develop a budget.
For some, this can be a major wake-up call. If you seem to run short at the end of the month and can't figure out where the money goes, this is a great way to discover trends in your spending habits. - Learn from your mistakes.
Even if you're over your head right now, you can make a couple of key changes and get back on track. As soon as you learn from your mistakes, you can start taking a step in the right direction.