CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Five Tips for Young Debtors

More and more these days, graduates are finishing their college careers deep in debt. Before they even join the job market, get married, buy a home, or start a family they are saddled with significant debt. Statistics also show young adults are accumulating wealth at a much slower pace than their parents are grandparents, due in part to their student loans.

And in addition to the burden of student loan debts, many are accumulating a great deal of consumer debt just to maintain an average lifestyle. They are forced to put everyday items like gas and groceries on high-interest credit cards, worsening their already bleak debt problems.

The good news is as a young debtor, you have some time to fix your problems. It could be several years before you are ready to make major purchases or do anything that would warrant a look into your credit, but the important thing is you take action as soon as possible to get your situation under control now instead of ignoring the problem.

What are some of the most important tips for young debtors to begin moving toward a brighter financial future?

Know Where You Stand

First and foremost, you must be aware of your current situation. Before you can make improvements, you need to know what you owe and what you earn. If you haven’t already, calculate your total debt and know what you have incoming from various sources.

Pay Yourself

Once you have a clear picture of your financial situation you can create a budget. Any way possible, within that budget, pay yourself in savings before you pay anything else. For some this is impossible, but really take a hard look at what you spend. Even $5 or $10 per week cut from your spending and put toward savings can make a big difference. In time, this gradual savings will give you a cushion that can help you avoid sliding back into debt in an emergency.

Don’t Jump the Gun

If your financial situation is less than ideal, postpone any big purchases for the foreseeable future. You should have your debt eliminated or well under control and a comfortable savings in place, as well as putting money toward retirement, before you invest in big ticket items like a home. Rushing into serious financial commitments too soon can get you into a world of trouble that will take decades to erase.

Make Smart Choices

Make sure any money you do spend is well thought out. Now is not the time to be overindulging. Once in a lifetime opportunities might come along, but you do not need those opportunities to derail your long-term financial plans. Also be smart about small daily and monthly expenses. A little bit spent here and there adds up quickly and could instead be put toward eliminating debt.

Know When to Say When

Does your financial situation seem bleaker than it should? Did your original calculations result in the realization you owe more than you earn? Now is the time to realize a financial emergency is on the horizon.

If you are a young adult and unsure how to handle a financial crisis, we can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 for more information.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Here’s How You Can Rebuild Your Credit

How do you repair this damage and rebuild your credit after filing for bankruptcy? Many people believe that filing for...
Read More

How Can You Practice Smart Credit Card Management after Bankruptcy?

How can you learn better credit card management after bankruptcy? Using credit after bankruptcy is an intimidating experience for many...
Read More

How Do You Improve Your Credit Score?

How do you improve your credit score? Here's what you need to know. Your credit score plays an important role...
Read More

Does Bankruptcy Credit Counseling Work?

Bankruptcy credit counseling helps you emerge from bankruptcy understanding credit management. People filing for bankruptcy must take two courses regarding...
Read More

5 Things That Boost Your Credit Score

Your credit score has a major impact on your financial life. You can be a great person with a bad...
Read More

How to Correct Errors on Your Credit Report after Bankruptcy

How do you deal with errors on your credit report after bankruptcy? In a perfect world, you could ignore your...
Read More

Tips for Rebuilding Your Credit after Bankruptcy

One of the primary goals after filing for bankruptcy is rebuilding your credit. As tempting as it might be to...
Read More

I’m Starting a New Life and I want a Financial Fresh Start – Should I File for Bankruptcy Now or Wait?

As the say goes, “when it rains it pours.” If you’ve found yourself experiencing financial difficulties while also dealing with...
Read More

What Does It Mean to Get a “Financial Fresh Start” in Bankruptcy?

Financial Fresh Start You’ve probably heard it before. “Bankruptcy gives you a financial fresh start.” It’s something stated on this...
Read More

Tips for Overcoming the Negative Emotions of Bankruptcy: How Can an Attorney Help Me with My Finances?

As advantageous as bankruptcy is when you are struggling financially, it’s still a stressful experience. Some people have a tough...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions