Debts are cruel. If you ignore your debts, you will lose the mental peace. The financial stress can damage your health, personal relationship, and the motivation to enjoy life.
As per the study released by the the Urban Institute and Encore Capital Group's Consumer Credit Research Institute, 77 million Americans are in credit card debt; they have a debt in collections.
On the other hand, our nation owes $1.48 trillion in student loan debt.
The saddest part is, living cost and education cost is becoming sky-high, but the income is not growing in a satisfactory manner.
A student who took out a student loan to completed the higher studies is unable to find a good salaried job. He has to accept an average salaried job to survive.
The New York Times has reported, "Americans aged 25 to 34 with a four-year college degree have a startling low unemployment rate of just 2.1 percent, compared to 7 percent for those without a degree."
They are preferring to pay off their student loan debt staying with their parents.
In short, due to the pressure of debts, many people are delaying in achieving some important life goals like starting a family, buying a house, planning vacations, and starting a business.
Well, you should be positive in your life. Because no one is immune. Problems happen; you shouldn't lose your hope.
It is true that achieving life goals become difficult when you are in debt. Because your main priority should be to get out of the financial trouble first.But, you can still be able to fulfill some life goals.
Read the article carefully:
As per the report of Brides.com, due to the huge student loan debt burden, many people are delaying the plan of starting their family.
The average wedding cost in our nation is $32,000. When you have debts, the cost of starting a family is difficult but not impossible.
Though the average cost of planning a wedding has been too high in our nation, yet some couples were successful in planning a budget wedding. They spent less than $10,000 on their wedding to start their family. So, you can get married while in debt by planning a frugal wedding.
When you are in debt, you should plan your wedding wisely.
Remember, you don't need to spend a lot to make the marriage a reality. Don't go overboard on planning the marriage.
By planning a frugal marriage, you can start a family without waiting until you pay off your debts.
Ideally, paying off debt before buying a home makes sense. Because, when you are already in debt, the mortgage payments can create an extra financial burden for you.
Unfortunately, some people have to buy a home to start their family. Rent doesn't come cheaper. In addition to this, after completing studies, coming back to the parent’s place doesn't look good.
According to the National Association of Realtors 2015 report based on the home buyer and seller generational trends study, a large percentage of recent home buyers are all in some form of debts.
Buying a home when in debt depends mainly on what portion of your monthly income goes towards your debt obligations.
It decides how much you can afford in mortgage payments.
You can opt for consolidation; it helps to combine your multiple debts into one. It will simplify and lower your monthly debt payments. Reducing the monthly debt payments will help you to lower the DTI. Once your DTI is low, the lender may approve you a home loan with a lower interest rate.b. Consider a side hustle to boost our income
A part-time job or a side business can help you to boost your income. Go online to get ample of ideas.
A large number of people in our nation undergo poverty in their golden days due to lack of savings. Some people have to extend their working life due to no or less savings.
Well, announcing retirement at the right time and enjoying the rest of the life is becoming one of the major life goals these days.
You shouldn’t ignore your financial future today. Many people are even trying to achieve financial independence.
They want to work hard to save enough money so that they can announce early retirement (financial independence).
Achieving financial independence requires hard work, dedication, and planning. If not financial independence, you should at least try to secure your retirement days so that you can take retirement at the right age.Here’s how you can secure your retirement days:
Starting a business when you have debts can be difficult due to the lack of cash flow. But, carrying a debt shouldn't prevent you from starting a business.
Well, spending money on a vacation is not recommend while you are trying to get out of debt.
But, you shouldn't spend a hell lot of money on your vacation. You should plan a budget trip.
Lastly, to chase the important life goals while in debt, you need to work hard and plan properly. You should try to stay within your means while chasing your life goals.
Once you start planning things within your affordability, you will be able to stay away from further debts. It will help you to easily achieve your long-term life goals like planning for retirement, investing, and planning for cruise trips.