Student loan debt is an increasing burden on many Americans, and it’s having a huge impact on their lives from graduation to the grave. Recently, a survey conducted by American Student Assistance® (ASA) highlighted some of the negative effects that mounting student loan debt is having, including:
- 27% said it is difficult to buy daily necessities because of their student loans;
- 63% said that it has affected their ability to make larger purchases like a car;
- 75% said that their debt has affected their decision or ability to purchase a home; and
- 73% said that they have put off retirement savings or other investments.
These postponements frequently turn into very real, very tangible shortcomings in retirement. One study found that $53,000 in student loan debt, which is the average for a household with two adults, turns into a diminished ability to build up retirement savings to the tune of $134,000.2 Obviously, the higher the debt, the bigger the problem can become.
These shortcomings aren’t lost on the student debtors either. A staggering 80% of people aged 30-54 don’t think they’ll have enough money to be able to retire when the time comes. It’s not difficult to see how the accrual of these debts can affect your ability to save. Yes, investing in your education increases your ability to earn, but you also need to make sure that you are focusing on your future at least as much as you focus on your present.
It’s a vicious cycle: many debtors feel that they can’t afford to pay on their debt and save for their retirement, but the longer they put off investing in their retirement, the harder it becomes to save enough to secure a strong financial footing. However, you should always remember that it’s never too late and it’s never too early to start protecting your future.
Chuck Oliver and his team at The Hidden Wealth System want to help you learn how to use the same model that banks use to keep people in debt to get yourself out of debt. You can learn how to get to zero the quickest way possible without changing your budget. This can generally be accomplished by addressing the order of how and what you pay. Start today to Secure Your Retirement!