Katie Kelton | (TNS) Bankrate
Kari Karanikos is 25 years old with six figures of debt. A social media director who lives in Pittsburgh, Karanikos is one of the many Gen Zers who love to travel, despite carrying hefty debt.
A recent Bankrate survey on chasing credit card rewards while in debt found that nearly 1 in 4 (24%) Gen Zers and 1 in 3 (32%) millennials carry a credit card balance. At the same time, nearly 3 in 5 Gen Zers (60%) and millennials (61%) plan to take a summer vacation this year.
Experts — and young people like Karanikos — know how tricky it can be to balance debt payoff with your budget’s needs and wants. But it doesn’t have to be all or nothing. Learn how Karanikos is juggling expenses and experiences, and discover ways you can do the same.
Splurging on travel
If you end up on a flight, cruise or other mode of travel this year, look around — you might see more younger faces than older. That’s because roughly 3 in 5 Gen Zers (60%) and millennials (61%) plan to take a summer vacation in 2024. Only half of Gen X (50%) and fewer than half of boomers (44%) say they’ll do so.
Younger generations are also more likely to be spending more on travel this year — and going into debt to pay for it. Gen Z (44%) and millennials (37%) are more likely to spend more on travel in 2024 compared to 2023 than Gen X (20%) and boomers (24%), according to Bankrate research on discretionary spending. In fact, travel was the most popular purchase for which young people are willing to take on debt, compared to live entertainment and dining out.
Rita-Soledad Fernández Paulino, a money and self-care coach, says her clients often want to be able to pay off debt and still travel. Fernández Paulino is all for it.
“It’s important that people have a variety of self-care activities they can engage in… that allow them to still take care of themselves at different budget points,” she says.
How one Gen Zer is managing debt
When it comes to balancing fun with financial savviness, Karanikos is no stranger to the challenge. She’s doing her best to manage both while keeping an eye on the big picture.
Karanikos has only been out of college for a few years, and she’s staring down years — or even decades — of debt repayment. Of her six-figure debt, the majority is from student loans. She also carries about $5,000 in credit card debt and about $3,000 in a car lease.
Karanikos began accruing credit card debt in the months that passed after college graduation, but before she landed her full-time job. Now, she’s prioritizing growing her emergency fund without adding to her debt. That’s because Karanikos is moving to New York City in a few months, and wants to have plenty of cash in her back pocket.
“I definitely think of [my debt] every day,” she says. But by keeping an eye …read more
Source:: The Mercury News – Entertainment
