Atlanta Bankruptcy May Offer Freedom for Growing Number of Young Adults Forced to Move In With Parents
It used to be that teenagers were itching to get out of their parents' house by age 18. These days, young adults are moving back in with mom and dad.
Nearly 30 percent of 25- to 34-year olds are living with parents or grandparents, according to a recent article in The Christian Science Monitor. For young adults 18 to 24 years of age, the numbers jump to 53 percent.
Compare that to 1980, when just 11 percent of young people lived with their familes.
In most cases, 20-somethings lived on their own during and perhaps after college but returned because of low-paying jobs and growing debt - a phenomenon known as boomeranging.
Today, the average millennial carries around $45,000 in debt from a combination of student loans, credit cards, car loans, and mortgages, reports PNC Financial Services Group.
With their lack of job experience and inclination toward covering gaps in income with credit, people in their late teens to early thirties have been especially hard-hit by the recession, say Atlanta bankruptcy lawyers.
The good news is that mom and dad are helping. Some 78 percent of young adults living at home say the arrangement works well.
Research has shown that living in a multigenerational household can have positive social effects. With more family members around for support, it's easier to get through tough times that may have otherwise resulted in the inability to afford basics like food and healthcare.
But in the long run, the situation isn't ideal. When kids live at home, it puts a strain on their parents' budget. Meanwhile, young adults may postpone important life changes such as getting married, starting a family, and finding their own path in life.
For young adults who have put their life on hold due to debts, Atlanta bankruptcy can offer the freedom to move forward.
Bankruptcy can't eliminate debt from education loans (though some legislators hope to change that), but it can reduce or erase unsecured debts like credit card balances, medical bills, payday loans, and more.
By filing for bankruptcy in Atlanta, young adults may find the momentum needed to get their finances - and their lives - back on track.
More Blog Entries:
Three in 10 Young Adults Live With Parents, Highest Level Since 1950s, by Husna Haq, The Christian Science Monitor
Today's 20-Something Is Carrying an Average $45,000 In Debt, by Noelia de la Cruz, Business Insider