Student Loan Debt and FOMO: The Unintended Financial Consequences, Advice From Ameritech Financial

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Jun 27, 2018, 08:00 ET

ROHNERT PARK, Calif., June 27, 2018 /PRNewswire/ -- Communication has been a social activity for over 2500 years, evolving from the invention of the postal service in 550 B.C., and now spreading globally instantaneously. However, despite the convenience of these new technologies, the negative side-effects of social media apps are linked to poor self-esteem and depression, especially among younger populations, because they see their peers living extravagant lives with seemingly perfect relationships, careers, and other milestones of young adulthood. In essence, Millennials are struggling to "keep up with the Joneses" and save money, especially if they have high student loan debt. If borrowers are struggling with their monthly student loan payments, they should consider researching income-driven repayment plans (IDRs). Ameritech Financial, a document preparation service company, understands that expenses can add up in life and can assist borrowers with applying for IDRs for their federal student loans.

Exactly how quickly is social media growing in prevalence? Two years ago, users on Twitter sent over 350,000 tweets, and Facebook users messaged 30 million times. Today there are over 450 million tweets and 1.5 billion active users on Facebook. These numbers are staggering, and it is no wonder a new phenomenon of social media envy is revealing itself among the generation who grew up with this technology. When social communication is so prominent, it's natural to pay attention to what others are doing. In fact, Millennials topped other generations, at 88 percent, for those who compare their life with others. This is known as FOMO, or Fear Of Missing Out, in which 55 percent of Millennials fear missing out on what their on- and offline friends are achieving. Unfortunately, another study showed that Facebook users who used the app often were more likely to have poor credit scores and more credit card debt.

"There are also many positive benefits to social media, and we don't want to take away from those," said Tom Knickerbocker, Executive Vice President of Ameritech Financial. "Social media can be great for sharing information and staying up-to-date on financial news, including anything about student loans."

Evidence suggests that millennials may spend more on lavish gifts for themselves after using social media, which could also have a negative impact on their spending habits, credit score, and monthly balance. Not only that, but Millennials who struggle to "keep up with the Joneses" also risk not being able to afford their student loan payments. Fortunately, there is a wealth of information about financial literacy in print or online that could help such Millennials manage their student loans. For example, federal income-driven repayment plans could help borrowers get back on track with their financial goals by possibly lowering their monthly student loan payments.

"Social media users rarely post about mistakes, failures, or arguments, which are each common occurrences in life," noted Knickerbocker. "Some people advocate unplugging from social media for a time period to gain perspective on their values. Instead of constantly scrolling, they could spend time in-person with their loved ones, cultivate a new hobby, or even check on their financial plan to see if IDRs would help them breathe easier with their student loan debt."

About Ameritech Financial

Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.

Each Ameritech Financial telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).

Ameritech Financial prides itself on its exceptional Customer Service.

Ameritech Financial Newsroom

Contact

To learn more about Ameritech Financial, please contact:

Ameritech Financial

5789 State Farm Drive #265

Rohnert Park, CA 94928

1-800-792-8621

[email protected]

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Millennials Looking at Social Media on their Phones
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