7 Ways to Help Get Your Child Out of Debt
More and more young adults continue to struggle with debt. In fact, according to a report by The Institute for College Access & Success, the average college graduate earned a degree with $29,400 in student debt in 2012. Additionally, College Parents writes that the average amount of credit card debt carried by college students is $3,173. Seniors are graduating with an average credit card debt of $4,100, and 19 percent graduate with a balance greater than $7,000.
But this isn’t just a problem that’s impacting young adults; it’s also affecting their parents. When your child is struggling with debt, you’re faced with a tough question: What can you do to help? Here are seven ways you can help your child escape debt without placing a financial burden on yourself.
1. Lend a hand with budget assistance
If your child’s spending habits are racking up credit card debt, it may just mean they’re lacking good financial management or budgeting skills. Help them put together a budget that looks at their sources of income, in addition to what they owe. Make a point to prioritize their necessities, including housing, medical insurance and food. Help them figure out other areas where they can cut back, and develop a plan that they can stick to, ensuring they’ll pay down their debt, writes Zacks.