No one wants to think about it, but no one is guaranteed tomorrow. Nearly half of Americans are concerned about passing on debt to loved ones. According to Experian, debt tends to peak somewhere around middle age. Among Millennials, 17% have specific concerns about passing on education debt.* While it is never easy, there are steps you can take to help alleviate this stress.
THINGS TO DO
Make a concerted effort to lower your debt, especially high-interest credit card debt, and avoid accruing more. Buy nothing you don’t absolutely need until you’ve paid off all of your high interest debt.
A SAFETY NET
Overall, 21% of those who expect to pass on debt don’t own life insurance, which is the one thing that you should consider buying as you continue to pay off debt.* Should the unthinkable happen, the benefits can help provide financially for your loved ones. Your financial professional can review your needs and offer coverage options that are usually more affordable than you may think.
*Source: Nasdaq Personal Finance, 2024