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Young adults facing heavy debt load

On Behalf of | Aug 23, 2018 | Firm News |

Reaching the age of 18 comes with a lot of freedom. You are now considered an adult and free to break out on your own. Many young people begin this part of their life getting their own place to live, buying a car, getting a job or attending a secondary school. During this time, it doesn’t take long for credit card offers to come in the mail. Then soon after that, you may find they are maxed out. It is not unusual for people to reach the age of 25 and encounter high debt.

Currently, half of all college students carry four or more credit cards and 30% of them have them maxed out. Back in 2004, college students averaged only $946 in credit card debt but now it is over $4,000.

Credit card use among young people

Many times, the trouble begins for young people when they use credit cards to pay for everyday expenditures. Pizza nights with friends, weekend adventures and filling up the gas tank all seem like they will be easy to pay off later. Unfortunately, that is rarely the case. After all those expenses add up, paying the minimum payment due rarely makes a dent in the overall balance. Then the following month the process starts up all over again. Financial trouble for young people can come quickly and things like cash advances on credit cards and rising interest rates can only add to the problem.

Student loan debt

After you get your diploma in hand the reality of student loan debt appears. Student loan debt is at higher levels right now than both credit card debt and auto loan debt. The average person just out of school in 2016 will have $37,170 in student loan debt. Adding this amount to current bills and credit card debt can feel overwhelming to young people who are looking to start careers and family. Don’t forget, if you suffer an injury or some type of unexpected health problem, medical debt can accrue quickly.

A possible solution to the debt problem

Bankruptcy can be an option if you find yourself burdened with overwhelming debt. Even though declaring bankruptcy for younger people has traditionally been low compared to other age groups, the numbers are growing. In 2017, 110,000 people under the age of 25 filed for bankruptcy and is likely to rise as personal debt continues to grow. Bankruptcy is not always an easy choice, but it may be worth investigating as a solution to your financial problems.

If you are in your 20’s or 30’s and have considerable debt, you are not alone. Debt can turn into a significant part of life and is not always simple to eliminate. The trick is to keep an eye on ways of not letting it continue to grow.

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