As a Memphis bankruptcy lawyer, I often tell my clients that You are never too old for a fresh start, nor are you too young to build a better financial future for yourself.In fact, recent data on millennial credit card debt and income affirms that young people would do well to consider bankruptcy. Debt is rising among this demographic; there are few things as unbearable as watching those with their whole lives ahead of them lose some of it to debt.
Broadly speaking, consumer debt in America is cause for concern.
No matter your age, you should be concerned about consumer debt, which has been growing steadily since 2012. At the end of 2017, US household debt had grown to $13 trillion, a new record, and credit card balances had grown to $24 billion.
Clearly, this is a bigger issue, but millennials seem to have gotten particularly caught up in the credit card craze. Originally, many millennials steered clear of credit cards. As Sheila Bair writes for CNBC, “From 2008 to 2012, only 41% of those in their 20s had a credit card. That number has grown to 52%.”
Not only have millennials taken on more debt, but many are mismanaging it. According to the New York Federal Reserve Bank, 8% of millennials’ credit card balances were seriously delinquent in the first quarter of 2019.
When you consider student loan debt, it gets even worse.
As I’ve written before, a college degree is increasingly synonymous with unthinkable student loan debt. For the class of 2016 graduates, the average debt was $37,172, 6% higher than the previous year. According to recent data, millennials are collectively carrying $370 billion in student loans.
On top of that, their net worth is lower than previous generations at the same stage in life. When you look at the overall picture, it’s clear how dangerous it is for millennials to take on the additional burden of credit card debt.
Plan ahead for your future: Connect with a Memphis bankruptcy lawyer.
Whether you’re struggling with student loan debt in particular or simply debt more broadly, bankruptcy can help.
I’ve met many young people who are unable to buy homes or start families of their own because of student loan debt, which breaks my heart. Meanwhile, the number of defaulted federal student loans continues to climb. With bankruptcy, you can eliminate your credit card debt completely in some cases, which will make those student loan payments more manageable.
Beyond student loans, any debt is a sign that you’re living above your means, and it won’t go away on its own. There’s never a good time to be in debt, but young people have so many years ahead of them. Bankruptcy can set you up for a better financial future now.
We’ve helped thousands of people get out of debt. And we’ll offer every resource we can to help you do the same, so you can rebuild and get the future you’ve dreamed of.