Digging Out of Holiday Debt

Now that the post-holiday bills have started creeping in, many people are quaking in their boots at the thought of hefty bills eating away at their bank account.

The pandemic has been a harsh reminder of how fleeting financial security can be, especially for younger generations. In this coming-of-age story, we’ll look at how the pandemic has shaken things up for both Millennials and Gen Z.

The Pandemic Drives Credit Card Debt

Although new research shows that credit card debt did not hit the record highs experts in the U.S. originally predicted, this still didn’t stop most consumers from turning to credit cards.

Since more than 50 million Americans found themselves out of work due to government-ordered shutdowns, it’s no surprise to see that Millennials and Gen Z were affected the most.

The Pandemics Lasting Impact

Nearly 30% respondents said they were forced to temporarily stop making credit card payments during the pandemic. And younger adults experienced higher rates of income loss.

This will definitely have a lasting impact on the lives of younger Americans, especially Gen Z. If people are temporarily stopping their credit card payments, they are definitely not saving for emergencies, never mind retirement.

Need Help Digging Out

If you feel like your debt and interest rates have gotten out of hand, try calling your creditors to renegotiate your interest rates.

If you’ve been able to keep up with your payments and haven’t missed any in the last twelve months, your creditors might be willing to reduce your rates.

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