Today, almost everybody seems to be in some kind of debt. If you’re not paying off a credit card, it’s a car loan, mobile phone contract, or that ‘buy now pay later’ deal that tempted you when you needed a new laptop last year. Is this generation the most indebted yet? While older generations are typically more inclined to save up for the things that they want, shop around and pay in cash – although of course, this doesn’t apply to everybody – the younger generation typically do tend to be in more debt compared to previous ones. So, why is this?
Instant Gratification Culture
Instant gratification is around us everywhere, and it’s impacting the younger generation in particular. Why would you wait around to get something when you could just get it now on credit? Whether it’s a new outfit for a night out, the latest tech, or a holiday, options to buy now and pay later are everywhere and they are convenient. Sometimes, it makes sense to buy now and pay later, particularly if there is no interest to pay for a certain amount of time since it can help you spread the payments out and manage them better while improving your credit score each time you make payment.
Generation Z tend to be heavy social media users – and there’s a distinct sense of ‘keeping up with the Jones’s on social media. Lots of people from this generation feel pressured into having the latest brands and big names when it comes to fashion, technology, and a whole host of other things, which can lead to them making purchases that they can’t afford just so that they have that perfect photo for the ‘gram, and feel like they fit into the crowd. Of course, not everybody is like this, but social media does tend to have a huge impact on purchases, with influencers constantly on your timeline telling you why you should buy this amazing new product and how much you’ll miss out if you don’t have it.
Ease of Access
Another reason why Gen Z may be the most indebted generation yet is that it’s easier than ever to borrow money, thanks to the internet. Almost every site that you might want to buy something from these days has Klarna or Clearpay, allowing you to get your items straight away and worry about making payments later on. Credit card eligibility checkers are everywhere and Apple and Google Pay make it easier than ever to just use your credit card to make purchases without even giving it a moment’s thought. While this wider range of credit has, of course, had a lot of advantages for many, it can also create a lot of temptation for those who have seen something that they like and want to buy it. The easy access to borrowing money means that there’s little to think about before you click ‘pay later’ and before you know it, it’s easy to have tons of things that you’re paying off over time.
What to Do if You’re in Debt
If you’re Generation Z and agree with the above points, don’t worry. Getting into debt might be easier and more tempting than ever, but getting out of it doesn’t have to be impossible either. The good news is that you have several options to help you get out of debt and start taking control of your finances again. You can also check out these 8 tips for getting out of debt from New Horizons, a UK credit broker who work with a trusted panel of UK lenders to provide you with the right short-term loans for your needs. Here are some options to consider:
Sell Your Stuff
Have you bought something on credit only to realise that actually, you didn’t need it as much as you thought you did when you saw it on social media? Do you buy a new outfit with Klarna every week? Selling your unwanted stuff can be a great way to recoup some of that money you owe and give you some extra cash to make repayments with.
Consolidating your debts is a good way to get back in control of them all and make them easier to manage, especially if you have several smaller debts that you are repaying different amounts to at various times of the month. If you’re tired of trying to track your debts, taking out one loan to pay them all off means you only have to worry about one payment.
Today, there are plenty of fabulous options for making some extra cash that you can use to repay your debts. Freelance web design, writing, selling artwork, blogging, vlogging and delivery driving are just some of the great ways to make some extra money that you can use to clear your debt faster.
Are you Generation Z? Do you agree that it’s easier for your generation to end up in debt compared to previous ones?