Most people will encounter debt at some point of their lives; but does that mean it has to be for your entire life?
Many millennials, particularly those recently leaving school, have a (misguided) view of what post-university degree, bare minimum experience, and limited expertise can afford one. As a result they often find themselves extremely indebted, even when their jobs may allow them reasonable comfort.
According to the most recent Financial Stability Report released by the Bank of Jamaica, more than half of every $100 of household income is put towards servicing personal loans, a stark contrast to a decade ago when this was less than 20 per cent.
Student loans and credit cards are but two of the common traps young people tend to fall into, which often lead to indebtedness. Couple that with a car loan, because ‘university graduates must drive’, and other responsibilities and it is easy to see many fall head first down the slippery slope of indebtedness.
However, this does not mean one needs to bear that debt to death.
Below are some easy, if initially painful, steps to becoming debt-free and securing financial freedom: