The student loan debt crisis affects people of all ages. However, Millennials are the age group that is hit the hardest by it. Studies have shown that Millennials with student loan debt save less money than those who do not have any debt.
In fact, Millennials with debt have 46 percent less money in their bank account. The average Millennial without any student loan debt has $19,000 in retirement savings. Millennials who have debt have an average of $5,500 in their checking and savings account. This is not enough for an emergency fund. However, putting any amount of money away will benefit you in the future.
There are several things that you can do if you are struggling with student loan debt. You may want to consider choosing one of the following options.
Get a Side Hustle
It is estimated that 44 million people in America have a side job. Thirty-six percent of people with a side hustle bring in at least $500 extra every month. This money can go a long way in helping you pay off your debt.
Refinance Your Loans
If your student loans are taking up a large portion of your income, then you should try to get a lower monthly payment. You can refinance your loan to get lower payments and lower interest rates. You will save money and have more disposal income.
Reduce Your Housing Costs
Millennials often indulge on things that they do not need. However, housing is still the biggest expense. If you are able to spend less on housing, then you can put more towards paying off the student loans.
You can reduce your housing costs by moving into a smaller house. You may also want to get a roommate. Additionally, you may want to move back in with your parents.