Millennials and Financing
I grew up in the days of “lay-away”. Do you remember that? If you couldn’t afford to pay the full price of an item, the store would hold it for you as you made payments towards it. When you had paid the full amount, the item was yours to take home.
But now, people don’t have to wait for what they want…. they can just finance everything! Gone are the days of eating off card tables and folding chairs, sleeping on mom and dad’s hand-me-down mattresses, and driving Grandma’s Buick.
Now, if you want something you can’t afford, you can just finance it. You take it home in exchange for monthly payments with sky high interest rates.
And there’s no limit to what you can finance! Music festival tickets, exercise equipment, luxury sheets, and travel are a few on the list. Millennials are falling prey to this “financing scheme” more than any other generation. MarketWatch.com says interest rates for this kind of financing can reach up to 30%. To put that in perspective, the average credit card has an interest rate of about a 17%. We need to take a serious look at our finances, build a budget, and establish habits of giving, saving, and, of course, waiting.
Proverbs tells us to avoid what we can’t afford when it says, “It is not fitting for a fool to live in luxury…”
And Paul said, No temptation has overtaken you that is not common to man. God is faithful, and he will not let you be tempted beyond your ability, but with the temptation he will also provide the way of escape, that you may be able to endure it.”
If you, or someone you know, is struggling with overwhelming credit card debt, get in touch with Christian Credit Counselors. Learn more and start your free debt analysis at crown.org/ccc