For Young Americans Trapped Under Crushing Credit Card Debt, Bankruptcy Can Be Saving Grace
Youth isn't always what it's cracked up to be, at least not these days. According to a recent study, U.S. consumers in their 20s and 30s have more credit card debt than any age group.
Not only that, but they're also slower to pay off debt and more likely to ultimately die in debt when they fail to address their spending habits.
Americans born between 1980 and 1984 were found to carry the most debt - $5,670 more than their parents had at the same age, on average, and a whopping $8,150 more than their grandparents.
The researchers pointed out what our DebtStoppers bankruptcy attorneys have known for a long time: Young consumers who don't curb their credit habits today will likely die still owing debts, leaving their children responsible for their debt burdens.
If consumers continue to take on debt at the same pace, the future elderly population will be unable to afford retirement due to their massive credit card bills.
The problem isn't just the amount of credit card debt accumulated by young people, but the way in which they handle it.
Because credit is more widely available and debt is more socially acceptable, young adults are more willing to take on new debts before they've paid off old ones and to make minimum payments while allowing debt to grow.
While credit card debt no longer comes with the same stigma, it still has the ability to wreak havoc on your financial future. As debt grows, so do late fees and high interest rates; phone calls from harassing debt collectors; and the risk that your tarnished credit score will make it impossible to qualify for loans or future credit.
On the other hand, personal bankruptcy continues to carry a stigma, but remains the most effective way to break free of overwhelming debts.
Many young people fear filing for bankruptcy will damage their credit without realizing that their credit scores have already hit rock bottom thanks to late payments, busted credit limits, and enormous balances.
When you've dug yourself deep into a dark hole of debt, bankruptcy can give you the traction you need to claw your way out.
The sooner you resolve debt with bankruptcy, the sooner you can begin rebuilding your credit - and your life - for a brighter financial future.
Discussing your debt situation with an expert bankruptcy attorney is the best way to discover whether bankruptcy is right for you. Call DebtStoppers at 800-440-7235 to schedule your free personal debt consultation with a professional bankruptcy lawyer today.
More Blog Entries:
Rebuilding Credit After Bankruptcy May Be Easier Than You Think, Say Experts: December 21, 2012
Americans in 20s and 30s Have More Credit Card Debt, by Patricia Reaney, Reuters