Credit card debt is no joke but it sure starts off in a light-hearted manner, you are introduced to all the incredible perks that you get while using a credit card so you sign up for it and it’s not long till you receive a hefty credit bill which makes you wonder why you got it in the first place. While the younger generation might be aware of the tricks and the hidden charges that come with the handy credit but Generation X wasn’t so lucky which is why they are the ones that have the most credit card debt.
If you compare it to the other generations then know that for baby boomers it is $6,785, $5,928 for Millennials, and $2,876 for Gen Z. Whether it is the lack of understanding or financial irresponsibility, Gen X is dealing with a lot of credit card debt. Doesn’t it make you wonder why? Keep on reading to know more.
Why Gen X?
This is the first question that comes to mind when you hear the fact that Gen X happens to be the unlucky one with the most credit card debt. According to experts, this is because most Gen X people rely on credit cards since they are living in a time when things have become extremely expensive and where inflation is at an all-time high. Most of these people are probably in a place where they either have to look after their elderly parents or raise their own kids, maybe even both. This limits their possibilities to get rid of their debts as soon as possible.
What Can Be Done?
It doesn’t matter where you are on your financial journey, getting rid of debt is essential and needed for you to be able to reach your financial goals.
People are often introduced to the ‘snowball Method’ which is all about starting with the smallest debt first, paying it off then moving on from there. Basically what happens is that you pay the minimum in a higher-balance card to avoid unnecessary charges and pay off your smallest debt then continue doing so until you’ve paid off a considerable amount of it.
Another way you can deal with your debt is by cutting down on your current expenses for a few months in order to repay as much debt as you can. If raking up a credit card debt is a usual thing for you then you might want to look into increasing your income by learning a new skill, taking on overtime, selling things you no longer need, or starting a side business.
Credit card debt always starts out small but soon enough it grows into a giant that you will find a lot of problems dealing with.
