In a world where credit accounts are far too easy to acquire, it is not surprising that younger generations have obtained more debt than they can afford. According to the Australian Social Trends, 2014 report published by the Bureau of Statistics, the average household debt load is an incredible $80,000. Specifically for those between the ages of 16 to 25, debt to income ratios are at all time highs.

On average, younger generations are carrying forward debt balances in excess of $2500 each month, but only earning an average of $791 per week. This creates a grim picture of future financial success for Generations X and Y if a shift in focus to a life beyond debt does not take place.

Crippling Credit Card Debt

In order for younger generations to move away from a crippling level of debt, it is important to understand the implications of carrying debt balances into the future. Credit cards have a high cost – more so than personal loans or mortgages – as the interest charged each month on outstanding balances makes being debt free unfathomable.

Paying the minimums on credit accounts means that little to no progress is made toward paying off a debt in full, especially if more debt is being added each month. Younger generations should understand these critical aspects of borrowing, and the total cost they are required to pay back over time.

Credit Card Debt Help

If you fall within the category of borrowers who are having difficulty keeping up with monthly debt payments, it may be time to seek credit card debt help. There are a number of possibilities available to those who may be in this boat, including debt consolidation loans and debt agreements.

Consolidation loans allow debtors to combine most or all of their credit accounts into one loan, typically with a lower interest rate and more favorable repayment terms. This option can make credit card debt help easy by reducing the total cost of carrying debt and making payments much easier to manage month to month.

Debt Agreements Can Help

Debt agreements allow borrowers to enter into contracts with creditors that provide for frozen interest rates as well as fixed repayment terms, from one to five years. Debt agreements are best suited for those with outstanding debt totaling more than $10,000 and who are desperate for credit card debt help.

It is beneficial for younger generations to understand the implications of credit use, its cost, and its potential for growing out of control. It is also important to understand the options available when debt becomes difficult to manage. Implementing one of the strategies above can be powerful for those willing to make the commitment to living a life beyond debt.

To talk to someone about a debt agreement and see if it is the right solution for you call 1300 123 328 or Enquire Now!