If you are a young man who is burdened with debts, or parent of a young person in debt, you can begin to reverse your situation today!
The debt has become like the black plague of modern times, as the economy slowly eats away at families and not allow them to thrive in the material. What is surprising is how this disease also affects more than one third of the younger population.
According to a survey conducted in Chile by the National Youth Institute (INJU), 1,237,191 young people between 15 and 29 have some level of debt in our country, equivalent to 33.18%.
In this alarming number must be added the fact that 72% of young indebted use financial instruments including credit cards stores, which are known for their higher interest rates, occupy almost 70% of use.
The document submitted by the INJU quote:
Despite its status as youthful and meager sources of income, financial institutions have defined young people as customers, getting to market their products in almost half of the young population (48.4%).
The first reaction that cause these numbers is astonishment unpublished financial institutions, which apparently no limits to offer their products and are geared to college students to have, in the near future, a percentage of customers called “young professionals.”
However, blaming the financial institutions by the state of the sluggishness of our young people is like trying to blame the weed seed by a mismatch.
The youth debt goes far beyond the lack of ethics of financial institutions. The underlying problem is poor financial education of these youths.
Furthermore, there is a problem inherent to young sector of the population. The vast majority of adults also show alarming levels of debt, regardless of their level of education.
The reasons for such indebtedness are diverse, and their justification is beyond the scope of this article. However, I refer to one of the most common reasons specific to the consumer society: the desire to possess goods and services which cost more than your income level that has prevailed over self-discipline and wise application of basic principles money management.
It is sad to see thousands of young people start their adult life with the burden of debt in their lives. Especially when everything can be done so differently by implementing basic principles of money management should be taught as part of the basic preparation for the life of every young person.
How can we change this alarming situation of youth debt?
The solution is simple: to postpone pleasure.
However, it is so easy to make. Easier said than done a long way. It requires discipline and financial education, as well as the willingness to swim against the current incentive to spend our money over to possess ever more consumer goods.
But it can get.
If you are young and lacks the education necessary to manage, save and invest their money successfully, is a thing to start changing your situation today!
Did you know that you can use the same mechanism of debt to these high interest rates, as many headaches that cause him to their advantage?
The secret is in learning to use the incredible power of compound interest, according to Albert Einstein, is one of the greatest inventions of mankind.
As a young person, you have a tremendous factor in its favor: time. If you are disciplined and are restricted in their spending and decides to reverse the curse of debt, you can invest your money and take advantage of the tremendous potential of compounding in your favor.
If you have 20 years and wants to retire as a millionaire, all you have to do is save $ 20 per week or $ 80 a month. With a 11% annual interest rate, you have 1 million at age 65.
However, if you’re 40, you have to raise $ 8,700 per year and, if you are 50, 29,000 a year to get the same result.
See? Your debt situation may be reversed. Enjoy it young. Do not ruin your future throwing a tremendous burden on his back and your future family. Make an effort today to educate yourself on the proper use of money, invest wisely and sleep soundly for the rest of his life.
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