Even Staff

2016-03-24

Millennials in Debt

All too often, the advice that millennials receive about their financial situations is so simplistic as to be unhelpful. The most commonly parroted themes revolve around making your morning latte yourself, looking for a second (or third!) job and getting a roommate. The truth is, the situations many millennials find themselves in cannot be overcome by simply cutting back on luxuries and living space. The problem often lies in the large amounts of debt millennials are carrying. Despite being one of the most highly educated generations, with nearly 25 percent of people aged 18 to 35 possessing at least a four-year degree, data taken from the U.S. Census shows that this group makes approximately $4,000 less than people who were the same age in the year 2000. Coupled by the fact that millennials graduating in 2015 reported an average of $35,000 in student loans, not to mention the thousands of dollars owed for credit cards and other consumer debt, it’s no surprise that skipping Starbucks isn’t the panacea it’s advertised to be. Millennials need real solutions and an effective strategy that enables them to not only eliminate their debt, but also build for the future.

 

 

Assessing and Prioritizing Your Debts

 

Having a clear picture of your financial situation is one of the most effective steps in solving a debt problem. It’s also the only way to ensure that solutions work, so this evaluation and organization should be your first step.

 

  1. Open a spreadsheet, or if you prefer, get a notepad and pencil.
  2. Go through all of your billing statements and other debt documentation and make note of the balance, interest rate and minimum payment due each month.
  3. Organize the debts from the highest interest rate to the lowest. You’re going to focus on the one at the top of the list.
  4. Make the minimum payment on everything except the debt at the top. This one should receive the minimum plus any extra funds you can throw at it every month until it’s paid off.
  5. Once the balance is zero, move on to the next debt on the list, using the money that would have gone to the previous debt to pay off the following one.

 

The biggest benefit of this method is that it saves you time and interest, as debts are paid off sooner. And once all your debts are paid off, the money you were putting toward those payments can become your savings and investment fund. You can keep putting the same amount away every month to contribute to your future without adjusting your budget. This is especially helpful to millennials, who have to be extra mindful of balancing their current cost of living with the undeniable need to save for the future. But if you need to free up some cash or want to pay off your debt sooner because of exorbitant finance charges or other fees, there are options for refinancing your debt to gain more control over your finances.

 

Tangible Solutions

 

Paying down debt is a priority, but there are other things you can do to assuage your current concerns and help you look optimistically toward the future.

 

Personal Loans

 

Getting into debt to get rid of debt sounds counterintuitive, but there is a distinction between good debt vs. bad debt. Using good debt such as low-rate personal loans to pay off bad debt like high-interest credit cards and student loans can save you money and time. While this solution is relatively unexplored by millennials, it's popularity is increasing as a growing number of online lenders begin offering solutions. For millennials, online lending may be a better choice than traditional sources of loan funds such as banks because of the more stringent credit and income qualifications of conventional institutions. Alternative finance companies are providing new solutions for the financial problems faced by the millennial generation. Using these new services, along with some effective technological tools, can help you redirect your future and make steady gains toward financial stability.

 

Balance Transfers

 

Shifting your high-interest credit card balances to a card that offers 0 percent interest is an excellent way to jump-start your debt payoff. Balance transfers stop your debt from accruing any new interest, usually for a period of three to 18 months, but you will likely have to pay a balance transfer fee, which can range from $5 to five percent of the balance. Without the added interest, you can pay down your balances faster and save yourself a good amount of money. Interest will kick back in once this period ends, however, so you will either have to pay it off before time is up or transfer the remaining balance to another 0 percent card.

 

Freezing Cards

 

While you could literally freeze your credit cards in a block of ice to prevent new charges, card companies are giving consumers the ability to freeze their accounts from authorizing new spending. You can usually do this over the phone or online, and it’s just as simple to unfreeze if you need to use your card again. Some cards have a time limit on this practice, so contact your card issuer to find out how long you can keep your account frozen before it's canceled for non-activity. If the card is canceled, it will appear as a closed account on your credit report, which can lower your credit score.

 

Digital Tools

 

There are many apps and websites that can help you take better control of your finances. Mint and other budgeting applications can connect to your bank and credit card accounts to give a comprehensive picture of your spending. You can then create a personalized budget and keep track of how well you’re adhering to it. While paying down high interest debt is vital, it's still important to put some money towards savings and investments. Putting $25 to $50 into both your emergency savings and investments every month can give millennials a better sense of control. You can use apps to make periodic transfers from your checking account into your savings and investment accounts. Digit, for instance, analyzes your spending habits to determine when you can best afford to make transfers of $5 to $50 throughout the week. Apps such as Acorns round up the amounts of your purchases to the nearest dollar and send the change to an investment account. You can even transfer these funds to a robo-advisor service that automates your investing decisions, creating a nest egg effortlessly.

Read More

Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content.

PROVEN SCALE & TRUST

$6B+

credit facilitated via our platform

1,000+

partner network

27M+

consumer inquiries quarterly

Awards

PRESS

Read all about it!
PR Newswire
Nuula adds Term Life Insurance feature, powered by Even Financial
TORONTO, Aug. 4, 2022 -- Nuula, a fintech company focused on providing small businesses the tools and the capital they need to succeed, today announced a new Term Life Insurance feature that provides small business owners and entrepreneurs with coverage options from a network of top carriers, powered by Even Financial ("Even"), a leading embedded finance marketplace platform, and independent subsidiary of MoneyLion Inc. ("MoneyLion") (NYSE: ML). Through the Nuula app, users will now be able to shop, compare and buy Term Life Insurance, with policies up to $5MM in coverage and terms of 10-40 years. The policies in Nuula's new Term Life Insurance feature are generated and serviced by LeapLife, an insurtech platform and licensed life insurance agency, that is owned and operated by Even. "While small business owners and entrepreneurs are investing in their business, they also need to more easily invest in themselves and in the security of their loved ones," said Mark Ruddock, CEO at Nuula. "Adding Term Life Insurance further expands the range of services we are delivering to meet the diverse needs of today's small business owner." "Policyholders want a simpler way to shop around, compare policies and prices, and find a policy that is right for them," said Andrew Naoum, SVP of Sales at Even. "By partnering with Even, Nuula's small businesses are provided with a curated network of carriers rated A- and above by AM Best, world-class customer support and a search feature that matches people with the right policies and lowest available prices when and where they need it." Today's news follows the launch of a new personal loan search feature aimed towards early-stage small businesses, powered by Even. About Nuula Nuula is building the future of small business performance. Launched in 2021, Nuula is a financial services and technology company focused on serving the small to medium-sized business community. Nuula provides real-time data and analytics, allowing businesses to manage their finances, monitor their credit ratings and user reviews, and more. Nuula is an advocate of financial inclusivity and a proud partner to Kiva to create economic and social good. To learn more about Nuula, visit www.nuula.com. About Even Financial and LeapLife Even is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. ("MoneyLion") (NYSE: ML). MoneyLion is the go-to destination for personalized financial management, content, offerings and advice. As part of MoneyLion's enterprise offering, Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2022 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at www.evenfinancial.com and investors.moneylion.com. LeapLife is a licensed life insurance agency that utilizes data science, deep underwriting knowledge, and proprietary technology, enabling consumers to apply for instant-decision life insurance policies with real-time quotes, available in all 50 states. LeapLife was acquired by Even Financial (Even) in early 2020. Learn more at www.leaplife.com.
Even
Even Financial Adds Tally's Low-Interest Line of Credit to its Embedded Finance Marketplace
NEW YORK, NY, March 15, 2022 -- Even Financial ("Even"), the category-leading embedded finance marketplace and independently managed subsidiary of MoneyLion, Inc. (NYSE: ML), has announced a new partnership with Tally, a leading financial automation company, to include the company's low-interest credit offerings on its platform. "Tally has built a powerful tech-enabled system to help people solve one of the biggest financial problems today: paying off credit card debt," said Phill Rosen, Founder and CEO of Even. "We're thrilled to welcome Tally's line of credit offerings to Even's unparalleled network of financial services providers." Tally is designed to help its members pay off their debt faster and save them money on interest and late fees. Members can lower their monthly payment with Tally's lower-interest line of credit, if eligible. Typically, at least a 580 FICO score is needed. Tally's system is customized to save people as much money as possible. "Americans today owe nearly $1 trillion in credit card debt. We know from our research that many want to pay down their debt but struggle to get started. That's where Tally comes in," said Jason Huynh, VP of Credit, Analytics & Operations at Tally. "Our system combines financial automation with a low-interest line of credit to give people the help they need to get on track to pay off their credit card debt for good. We're thrilled that our partnership with Even will allow Tally to help even more people." The launch of Tally on the Even platform enables consumers to get matched with Tally's custom, low-interest line of credit accounts of up to $25,000 in just a few minutes. After getting matched, eligible consumers complete the process through the Tally app. There are no out-of-pocket costs. Tally is the latest partner to join the Even marketplace, a growing network of over 400 financial services partners and 500 channel partners covering a breadth of financial services including loans, credit cards, mortgages, savings, and insurance products. Even's marketplace technology enables any company to add financial products to its business, with full compliance and security, at scale. About Even Financial Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2021 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at www.evenfinancial.com. About Tally Tally is a consumer financial tech company pioneering full-service financial automation to help people save money, pay down their debt and reach their goals sooner. Founded in 2015, the company built the first fully automated debt manager to help put billions of dollars back in people's pockets. In 2021, Tally was named to Fast Company's Most Innovative Companies list and to Quartz's Best Companies for Remote Workers. Previously, Tally made Forbes' Next Billion Dollar Startup list, Forbes' Fintech 50 list, and the app won Real Simple's Smart Money award. Learn more at meettally.com. Media Contacts media@evenfinancial.com press@meettally.com
Even
Even Financial’s Embedded Finance Marketplaces Surpass $5 Billion in Credit Facilitated
NEW YORK, NY, April 19, 2022 -- Even Financial (“Even”), the category-leading embedded finance marketplace and independent subsidiary of MoneyLion, Inc. (NYSE: ML), has announced it has now facilitated over $5 billion in consumer credit, as of March 2022. Leveraging machine learning and advanced data science, Even solves a significant pain point in financial services customer acquisition by seamlessly bridging financial service providers and channel partners via its industry-leading API and embedded finance marketplaces. “Surpassing $5 billion in consumer credit facilitated through our marketplace is an enormous achievement for Even as we continue to help build the future of finance technology,” said Phill Rosen, Founder and Chief Executive Officer. “Access to credit has long been a challenge for many hard-working Americans, and we are dedicated to alleviating this issue by providing consumers personalized financial services offers that meet their needs, when they need it most. Reaching the $5 billion milestone reaffirms that our mission is driving significant value for both consumers and our partners." Even has grown its embedded finance marketplace offerings beyond loans to cover a breadth of additional financial services including credit cards, mortgages, savings, and insurance products. Within loans, Even offers the largest network of premium, connected loan providers - across a wide array of products including unsecured personal loans, secured personal loans, line of credit, student loan refinancing, and auto loan refinancing. Leading financial services providers, such as LendingClub and SoFi, partner with Even to reach qualified consumers searching for loans, benefiting from Even’s unparalleled network and native integrations. The company has continued its rapid growth trajectory in 2022, growing its network to include over 400 financial services partners and 500 channel partners. Even's marketplace technology enables any company to add financial products to its business, with full compliance and security at scale. Earlier this year, Even announced the close of its acquisition by MoneyLion, the award-winning digital financial platform, which will continue to advance their combined efforts of providing financial access and advice to hard working Americans. About Even Financial Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2022 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at evenfinancial.com. Media Contact media@evenfinancial.com