As the calendar turns to March, COMPASS is focusing on debt management this month. You will hear perspectives from financial advisors, debt experts, and faith based financial voices as well. As we set the stage for this conversation, it is important to briefly articulate some of the different types of debt we might face.
A couple of years ago, about 6 out of every 10 millennials did not have a credit card. Since then, that ratio has changed somewhat. One thing that does seem clear is that millennials as a generational group lack some credit card knowledge, especially as they relate to credit scores.
Student Loan Debt
Among Millennials, student loan debt is a major generational challenge because of the well-documented increase in the cost of education over the past two decades. Natalie Kitroeff recently noted “Four Ways Student Debt is Wreaking Havoc on Millennials.” Natalie notes that:
- Student debt seems to dampen home buying
- Young people are delaying starting families
- Millennials are saving less than they could be
- College loans make it hard to be financially healthy
How do we manage these and other kinds of debt? How do we faithfully give and live when facing the reality of debt?
These are questions that there aren’t easy answers to. For example, most of the above observations are true for my wife Allison and me. We have found that it is most helpful to remember the reasons for the debt in the first place.
We have yet to buy, or even look for a home because of our educational and vocational plans as we prepare to be a pastor (Allison) and a rostered leader in ministry (me). We have taken on this debt largely because we believe that our education matters, and that we are called to serve in capacities where an education will be invaluable. So in this sense, these loans are and remain an investment on our part in our present and future.
Conversations about Debt
This month COMPASS is beginning a new initiative offering a monthly conversation in real-time on the month’s theme. The first conversation will center on topics related to debt and how to manage it. It will be held on Tuesday March 22nd at 8pm EDT/5pm PDT. Sandy Crozier will be our topic leader. Sign up for the Live Chat at https://stewardshipresources.org/compass-live-chats. If you have questions that you would like to discuss, please let us know in the comments, via Facebook or Twitter, or by email.
What questions do you have about debt and managing it?
This blog is a component of the Ecumenical Stewardship Center’s COMPASS initiative to engage young adults in conversations about faith and finances. Like what you see and want to know/do more? Visit the COMPASS web page and join the COMPASS community on Facebook.
Image Credit: Debt