How much credit card debt would you have to accrue before you consider asking for help? According to a recent study by CreditLoan.com, millennials, born between 1981 and 1997, say they’d ask for help around the $13,000 mark, compared to a breaking point of around $15,500 for generation X, born between 1965 and 1980, and around $19,000 for baby boomers born between 1946 and 1964.
“In my opinion, millennials are most likely to ask to borrow money because they are in a position financially where fully supporting themselves is more difficult than it was for their parents or even their older siblings,” says Daniel Wesley, founder of CreditLoan.com. “The millennial generation is crippled by student loan debt, where they then enter a workforce that, although stronger than years past, is still tied to salaries that cannot keep up with the level of inflation occurring across the nation.”
“This is also a generation that has proven to value 'experiences' above all else, from moving to big cities, gap-years, internships, millennials are more willing to pursue different paths to achieve what they deem is 'successful',” he adds. “Millennials crave opportunities and involvements that will increase their 'personal' value but does not always equate to a monetary gain.”
Interestingly, millennials are 12 percent more likely to ask their mom for financial help over their dad. They’re also 59 percent more likely to accept money for basic necessities and more than twice as likely to borrow money for a vacation, compared to baby boomers.
When looking at the data based on gender, women of all ages tend to have a lower threshold for how much debt they'd have to accrue before asking for help. The results further reveal that while women are more likely to seek financial support from family or a friend, men are more likely to pursue other avenues to pay off their debts. “From the tamer options—like selling furniture or a car—to the more extreme—like stealing—men are more likely to eliminate their debts through these choices,” Wesley says.
Wesley suggests that before asking to borrow money, an individual should make a list of the pros and cons of asking for financial help. “Then you can truly figure out if you’re borrowing money for a need or a want,” Wesley says. If you decide to apply for a personal loan rather than asking a relative for money, he encourages shopping around. “Get at least three quotes: two digital and one brick and mortar, like your local bank,” he suggests.
When it comes to loaning money to a friend or family member, be cautious. “Get it in writing and make the terms crystal clear. Money has a terrible way of ruining relationships,” Wesley warns. “Set the boundaries of the agreement and stick to them. Above all, follow your instincts and don’t overburden yourself by trying to help another.”
