The new normal: 65% of parents pay bills and rent for their recent college graduates
If you’re still providing financial support to your college graduate, you’re not alone. A recent survey found that 65 percent of parents still support their children after they graduate from college.Millennials are remaining dependent on their parents for financial support, but it’s not necessarily their fault.
Millennials are remaining dependent on their parents for financial support, but it’s not necessarily their fault. New college graduates are entering the worst economic climate since the Great Depression and accumulating larger student loans than ever. A college degree no longer guarantees a job, much less one that covers the increasing costs of living. Across the US, unemployment rates average around 15% for young professionals aged 18-25 and 11% for young professionals aged 25-32. Conversely, the national average for unemployment is 5.5%.
Bottomline: is that today’s young adults aren’t equipped with the proper resources to manage their limited finances. Although getting a secured credit card, and/or credit card can be a powerful tool for personal financial management and building credit, credit card companies and traditional financial institutions continue to prey on millennials, hitting them with unexpected fees, charges, penalties, and obscene interest rates. With Backed, we offer an alternative solution. We provide short-term, low-interest loans to help recent graduates refinance credit card debt and and manage a variety of life’s expenses; from security deposits to medical expenses and student loan payments.
Backed makes it possible for parents to guide their children down a path to take permanent full control of their finances
Backed is the first service of its kind that allows millennials to gain control over their finances by using small, short-term loans. Refinancing with a fixed interest loan (and with rates as low as 2.9%!) is a smart way to avoid the death spiral of accumulating credit card debt.
With Backed, parents serve as Backers to help their children build a respected credit record and effectively budget for the long-term, rather than paying out of pocket for all of their expenses.
A BACKED loan:
- Enables parents to provide small, short-term loans for their recent college graduates without the traditional risks of co-signing.
- Ensures timely loan repayments with real-time, immediate notifications for late or failed payments.
- In case of a late payment, enjoy a free grace period of up to 15 days to cover the missed payment and prevent damage to either of your credit scores.