Can you be optimistic about economy when Generation Y’s in debt?

Being optimistic is the most important thing that helps you to go on with life. Life is full of hurdles and so if we lose optimism, it may not be possible for us to go on enjoying our life. Thus, even if generation Y is in huge debt it is important for us t be optimistic about economy. We will have to fight back and gain control of our finances. Generation Y is the young brood, the teens and twenty somethings and they are much more fast forward and are seemingly oblivious of the current financial situation. They know how to get onto debt and are not much bothered about the situation that can arise out of this and they will face difficulties in order to get out of debt

Generation Y and their lifestyle
Even before recession set in, the Generation Y who believe in get-it-now and pay-for-it-later strategy have been facing financial stress as they had always been interested on more and more expenditures. Thus most have ran up credit card debts.
In addition to this lifestyle, the problems have even increased twofold with the recession. As per reports the average college student graduate debt amount is $24,000. With increase in the unemployment levels, the student debt including education and credit card debt leaves most of the students looking for federally funded programs which put a deferment on the debt payments or cancel the student loans.
The stagnant wages, insecurity with job, and also the decline in the employer-sponsored health insurance and the retirement benefits, rapid increase in the basic expenses, and the rapidly increasing debt and the minimal savings is posing a threat to the economic security of the entire generation. Almost about 37% of the Generation Y people aged between 18 to 29 year have been either underemployed or without any work during the recession. As per National Foundation for Credit Counseling or NFCC, only 58% of people pay their monthly bills on time. In addition, 60% of the working people aged between 20 to 29 years, cashed out dollars from their 401(k) retirement accounts. This is really a step that should be avoided at all costs as there’s no security left for the future and moreover people are required to pay taxes on such withdrawals. The generation Y as per reports, are not even putting money into their savings accounts and on average the Generation Y people have more than 3 credit cards.
Though the situation is grave enough, still it is better not to lose hope and optimism. It is important to include financial management studies in college courses so as to make the generation more aware of the importance of spending less and saving more.

Author’s Bio: Martha Jackson loves to write financial articles and she is a contributory writer associated with Debt Consolidation Care Community and has written several articles on debt consolidation, debt settlement and get out of debt for various financial websites. She holds her expertise in the Debt industry and has made significant contribution through her various articles.