4 Reasons Mounting Millennial Debt Requires New Credit Union Solutions
The power of the millennial cannot be overstated as they now make up a considerable chunk of the working adult population. But this rising generation doesn’t come without their financial woes. And while saving money is something every generation can appreciate, millennials, in particular, are typically drawn to credit unions because of their better rates and lower fees, and for good reason. Here, we dive into the top millennial problems that warrant credit union solutions.
Enhance financial literacy
It’s hard to talk the talk if you’ve never walked the walk, which is why joining an unfamiliar credit union can be intimidating. In fact, most millennials think credit unions are for members only, as if an exclusive club that requires an initiation and sponsorship. This can be used to an advantage, however, as this generation generally likes to feel like they are part of an organization and think of banks as putting money directly in the hands of stockholders.
Build responsible credit
The customer service for which credit unions are known can be used for the power of good when it comes to helping millennials build credit responsibly while at the same time saving more than the bare minimum for retirement. It’s no surprise that millennials generally have more debt than the generation before, and not just in credit cards and student loans, but also as early first-time homebuyers with no real means for a down payment. Credit unions have the means to prioritize what to pay back first and when to pay the minimum balance, while also advising on when to consolidate high-interest credit card debt into a low-interest personal loan.
Promote online banking
Mobile convenience is a must for millennials, especially when it comes to budgeting and managing loans and debt. What’s more, along the same lines, millennials typically take their trust straight to the proverbial bank (or credit union, as the case may be) and want to feel safe knowing their money is in good hands when it comes to security. Millennials are generally very in tune with growing issues of privacy and the growing concern of data breaches.
Being social responsibility
Credit unions typically have a socially responsible community program, and millennials generally favor community in lieu of corporate America, creating the perfect marriage. Banks get a bad wrap around regulations, while credit unions in essence take on the structure of a nonprofit in terms of giving back to the community in which their members live.