As the coronavirus continues to upend local economies throughout the country, credit card debt is on the rise. A recent report from CreditCards.com revealed that 47% of adults in America—roughly 120 million people—have credit card debt, an increase of 43%.
There is no corner of our country untouched by the pandemic. As recent unemployment figures show, people of all ages are grappling with financial hardship. But according to the most recent numbers, young people have been hit especially hard. 1 in 3 millennials, about 34%, have gone deeper into credit card debt because of the coronavirus.
It’s easy to see why. Many millennials were struggling long before the pandemic. Millions of them live paycheck to paycheck, with just enough to get by. Of the millennials ages 23 to 38 surveyed in Schwab’s 2019 Modern Wealth Report, only 39% self-reported as having enough to live off of for three months in the event of an unexpected emergency. 36% said that they have nothing set aside for such an event.
These sweeping, devastating changes took place almost overnight, forcing 30 million to apply for unemployment. As CreditCards.com analyst Ted Rossman recently told CNBC, “Unlike the previous recessions, 08 and the Dot Com crash, unemployment happened so suddenly that people were forced to rely on their credit cards.”
Millions of millennials can’t see a way out of their debt. Many are filing for bankruptcy.
Here’s a particularly heartbreaking statistic. 60% of millennials don’t think they can pay off their debt in their lifetime. Despite a plan for paying it off, small monthly payments are often the only thing that’s possible. When you take interest and fees into account, it’s hard to make progress.
This may well be the first generation that has only ever known debt. In contrast to Gen X, baby boomers, and other generations, millennials have had to rely heavily on student loans, car loans, home loans, and more.
You’re never too young to be debt-free.
I’ve written before about all that bankruptcy can offer the younger generations. Discharging your credit card debt in a Chapter 7 will make it so much easier to tackle your student loan payments.
This isn’t a time to sink deeper into debt. Nor should we sit around and wait for it to get better. I know that the current circumstances make it difficult to see beyond the next few months, or even weeks. It may feel like there’s no end in sight, but the truth is that you have a whole life ahead of you. You deserve the financial freedom to truly enjoy those years ahead.
We’re working remotely during this time and can help you file for bankruptcy seamlessly, but we also have a lawyer available to meet in person.
Give us a call today at (901) 327-2100 to explore your options.