Student loans and credit card debt continue to soar among teenagers and kids in their 20-30's. However the economy of this sandwich generation has led adult children back into the homes of their parents and made them more dependent than ever. Parents are forced to decide if stepping in to rescue them is a smart idea. This article offers advice for digging kids out of debt and keeping them out.
One thing's for sure: A lot of them do need help. The typical 25- to 29-year-old owes more than $35,000, according to a recent study from PNC Financial Services -- and only about 40% of them say their debts include student loans. No wonder that between credit card balances, car payments, and other bills, 78% of the millennials with debt reported in a new Ameriprise survey that they feel woefully overextended. If your child is one of them, of course you want to help. These steps will let you do that—without undermining his autonomy or risking your own financial security.