Slow Recovering Economy Forces More College Graduates to Move Back in With Parents
Consolidated Credit Offers Insight to Achieve Financial Independence
A great number of college graduates find themselves facing the harsh reality of turning to their parents for help after graduation due to low employment opportunities according to financial counselors at Consolidated Credit Counseling Services. Consolidated Credit is receiving a large volume of counseling inquires about students with debt and income problems. The counselors offer insightful advice that young professionals can use to gain control their finances.
The national unemployment rate for 20- to 24-year-olds was 14.9 percent in April, down from 17.2 percent a year ago, but well above the jobless rate for older workers. Many college graduates are finding themselves moving back in with their parents with significant debt and no job. Counselors report that one in five people seeking help have financial issues related to this problem. Many college graduates are finding themselves moving back in with their parents with significant debt and no job. Counselors report that one in five people seeking help have financial issues related to this problem.
There is an anxiety associated with being educated and jobless. There is guilt about taking financial support from already struggling parents coupled with the worry of not being able to pay thousands of dollars in student loans. We are hearing from parents and college graduates themselves, about joblessness, outstanding credit card debt, and student loan debt putting both the graduate and the parents in a difficult financial situation.
The first step Consolidated Credit counselors recommend to people who reach out to them for help is to establish a strong financial literacy foundation by conducting a budget analysis. It’s a simple but powerful way to make sure that you control your money – and not the other way around. Young people have to take charge of their personal finances regardless of the sluggish economy by going over their expenses and eliminating unnecessary spending in an effort to meet their current obligations and be aggressive when working to find a job or make more money.
Consolidated Credit offers helpful advice to battle these unsettling times and achieve financial independence:
- Conduct a budget analysis – You cannot figure out how to bounce back from an economic hardship if you do not know your current financial situation. Sit down and add up credit card debt, student loan debt, and expenses that you have.
- Stay on top of your student loan debt – If you are not making enough money or don”t have a job, contact your student loan providers to get a hardship deferment. If you can afford to make monthly payments on your student loan debt, even if it is a small amount, do so. Defaulting on student loans will ruin a credit score.
- Get a grip on unsecured debt – If you currently do not have a job, do not use your credit cards. Credit cards should only be used when there is sufficient income to pay the balance off in a timely manner. For current debt, reach out to your credit card companies to negotiate a better payment plan. If they are unwilling to negotiate with you, reach out to a credible credit counseling agency that can consolidate your debt and get your interest rates significantly reduced and penalty fees eliminated.
- Find work — The faster you get a job, the faster you can start to pay off your debts and focus on financial independence. Be persistent and thorough in addition to being frugal when attempting to get a job. Finding employment can be costly as well, but be frugal and cautious about how much money you spend and what you spend it on.
Consolidated Credit, founded in 1993, is one of the nation’s largest credit counseling organizations in the country and has helped over 5 million people with financial issues. Their mission is to assist families throughout the United States in ending financial crisis and solving money management problems through education and professional counseling.