LSI Reports Millennials & Money: How Credit Unions Do Right By Their Members
CHICAGO, Feb. 22, 2019 /PRNewswire/ -- The Federal Reserve reported that consumer debt is at a record high. Sure, that's a good sign for increasing the income of the wealthiest 1% who are international stock holders hoping for increased consumer spending, which results in larger interest rate payments by American consumers, but what does it mean for young Americans?
The millennials are vulnerable to debt issues because they have less income to pay down their student debt, make car payments, as well as buy food and pay rent.
- $40,000 is the average amount of debt millennials owe
- 39% of millennial debt is student loans with a floating interest rate
Higher interest rates increase Millennials' chances of missing a payment. A missed payment means a lower FICO score, resulting in higher interest rates on their debt. As many of them are barely making their payments, these increased interest rates can make their monthly expenses exceed their ability to make all their monthly payments.
Unlike large banks, credit unions don't have international shareholders demanding ever increasing profits. Like Costco, you become a member of a credit union – meaning that the benefits members experience by having their checking and savings accounts with the credit union also enables the credit union to pass on the luxury of lower interest rates to those same members. It means that millennials get to pay back their debt at a lower interest rate and keep more of their money in their pocket.
Millennials are sometimes called the sharing generation. One reason for this is their lack of disposable income. So, in order to live the life they want, they share car rides through Lyft, occasionally rent out their apartment when they aren't using it through Airbnb and even share their Valentino, Prada and Gucci shoes, purses and clothes. They need to share more in order to enjoy the luxuries of life.
Credit unions are the luxury financial institution for this generation. Many credit unions also provide the luxury of an #AlwaysLIVE agent available to connect with their members whenever they need help, where ever they may be.
More and more millennials are turning to credit unions to help them live their best life and save money.
ABOUT LSI
LSI believes in helping people. Founded in 1994, LSI is #AlwaysLIVE in order to help their credit union clients Connect People with People through Remarkable Service.
Media Contact: D. Tyler Miller, [email protected]
SOURCE LSI
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