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Millennials Serious About Ditching Debt
Millennials are making wiping out debt a top priority, according to a USA Today/Bank of America Money Habit survey. Millennials are serious about ditching debt.
College Grads Somewhat Satisfied
Among those surveyed, two-thirds of millennials said they have made getting out of debt a top priority. This ranks just above having minimal financial stress, spending less than they earn and having an emergency savings fund.
The study showed a significant difference in responses from college-educated millennials versus those without a degree. Almost 60% of respondents with degrees said they were somewhat satisfied with their current financial situation, while only 40% of non-college grads felt confident about their status.
Other findings:
• On average, 64% of those polled have savings–57% without a college degree and 85% with a degree. Even college grads strapped with student loan debt have more confidence than those who didn’t go to college or didn’t graduate;
• Across the board, 51% are concerned that they won’t have enough money to achieve financial wellness;
• Among millennials with savings, 43% have less than $5,000 put away; and
• One-third of those with savings have a 401(k): About half of millennials ages 26-34 participate in an employer-sponsored 401(k) plan, while only 14% of millennials younger than 26 participate in a plan.
Worried But Satisfied
Even though most young adults said that at times they worry about their financial situation, most generally are satisfied with their situation. They are wary about taking on more debt and are hesitant to purchase items they can’t afford.
No matter your debt situation, we’d love to touch base with you. Stop by or call today at (541) 382-1795 or visit online at www.midoregon.com.
Good Credit Is Good But…
Americans Know Good Credit Is A Good Thing. Up-To-Date Knowledge? Not So Good
Even though many Americans understand the importance of good credit, most are not taking advantage of their free annual credit report, according to a new study. We know good credit is good, but we don’t keep up to date on our credit.
Americans Aware of Free Credit Reports
According to Equifax’s 2016 Personal Solutions Group Financial Literacy Month Survey, 81% of Americans are aware they can get a free credit report every year, but more than 40% are not doing so. Sixteen percent have not checked their report within the past year, 14% have never checked their reports and 12% could not remember when they last accessed their report.
“The survey also found that many do not understand how their credit worthiness is determined,” said LowCard.com’s Lynn Oldshue. “For example, only 40% know that negative information stays on credit reports for seven years.”
Confusion About How It Works
Respondents also seemed confused as to what qualifies as negative information, Oldshue said. They were given a number of accurate and inaccurate statements and were asked to say whether those things affected credit. Respondents were able to identify that these were accurate statements:
How much you owe on credit cards and other loans (83%)
Opening new credit accounts (68%)
Length of credit (64%)
Types of credit or loans (60%)
However, some believed these inaccurate statements were also true:
Being denied credit (56%)
Interest rate on credit cards or other loans (30%)
Checking your credit report (30%)
“Unfortunately, poor credit is holding many Americans back. The respondents said bad credit has prevented them from getting a lower interest rate on a loan (19%), renting an apartment (7%), turning on utilities (5%) or getting a job (4%),” Oldshue said, adding there is some good news.
Many Consumers Monitoring Their Credit Score
While consumers are not necessarily reviewing their full credit report, many are monitoring their score. Only 27% said they do not check their score. For those that do:
32% receive it for free from a third-party website
25% get it from their credit card company and 14% get their score from their bank
4% pay for their score from a credit bureau and 3% pay a third-party website
1% used some other source
Equifax surveyed 1,008 consumers in April.
If you have questions about your credit report, Mid Oregon Credit Union can help. Stop by one of our branches, email us or give us a call to get started.
4 Things Your Teen Needs to Know About Debt
Upon graduation, many high-schoolers are ready (or think they are ready) for college. They’re emotionally ready to spend time away from home, they’re prepared for the workload of classes, etc. But what many of them lack is financial know-how.
According to DailyFinance, within five years of leaving home, most teens are faced with the decision of taking out student loans, buying a car, signing up for credit cards, or even taking out a mortgage. And it’s up to parents to instill some wisdom in those bright-eyed, bushy-tailed youths before they learn it the hard way.
Your teens shouldn’t be burdened with your financial stress, and they definitely don’t need to know all of your misdeeds. But they should know the basics of the common financial situations they’re soon to encounter. Whether you’ve done right with your money, made a boatload of financial snafus, or a little bit of both, here are some worthwhile discussions to have with your kids:
Student Loans: While student loans are often times a necessary debt, they’re still money owed to someone else….
Read more at ASmarterChoice.org* Blog
*About A Smarter Choice: Credit unions make a difference for their members and the communities they serve. ASmarterChoice.org, a project of the nation’s credit unions, was developed to help everyone understand that credit unions are the best option for consumers for conducting their financial business.