More Young Adults Struggle with Debt in Tennessee Compared to Older Consumers
Being young doesn't always mean being carefree - especially in today's economic climate.
With college tuition fees and the cost-of-living rising steadily, young adults today are suffering from more financial pressure than they have in generations. Couple these costs with the fact that most recent college grads are faced with a sluggish and brutally competitive job market, and you get a battle that feels like it just can't be won.
As a result, say Tennessee bankruptcy lawyers, many people in their 20s are starting out their adult lives with the burden of debt.
Credit card companies routinely push their products on college students who can't afford them. Meanwhile, young folks can't really rely on their parents for guidance and advice because adults of all ages are suffering from the same problem: spending more than we earn with the help of credit cards, then getting stuck with growing debt thanks to high interest rates and hidden fees.
Yet there's a solution that many young people overlook: filing for bankruptcy. Young adults often have a negative perception of bankruptcy because it seems extreme - and they may have heard it can't eliminate college loan debt. While it's true that bankruptcy can't make your school loans disappear, it does have the power to wipe out unsecured debt like your credit card balance.
For most young people, credit card debt is a problem that only gets bigger. Without a well-paying job, you may only be able to make minimum payments. Without years of responsible credit experience to your name, you may only qualify for high interest rates. The combination of low payments and high rates leads to a balance that grows out of control. Before long, you've got debt collection companies calling and wages being garnished from your already-too-small paycheck.
By filing for bankruptcy in Tennessee, many clients are finally able to pay more than the minimum payment on credit cards, make on-time payments, and get a handle on debt. With the financial burden lifted from your shoulders, you can start worrying about what really matters: finding that well-paying job and moving on with your life.
Never has there been such a significant gap between the earnings of the young and old, according to a recent story on MSNBC.com. Adults over 65 enjoyed a median net worth of just under $180,000 in 2009 - an increase of 42% since 1984. Meanwhile, people under the age of 35 had a net worth of $3,662. That's a decrease of 68%.
Part of the discrepancy is due to home ownership. Since the majority of older adults purchased a home before 1986, the gains received during the real estate boom in the 1990s offset many of the losses we've seen since. Young adults, on the other hand, either purchased at the peak of the market - leaving many struggling with high payments and little equity or, worse, a credit-wrecking foreclosure - or have yet to buy a home.
While all ages are suffering from the poor job market, older adults are more likely to have an established career and reputation.
Life isn't always fair when it comes to finances. But if unmanageable debt is holding you back, you don't have to put up with it. Tennessee bankruptcy is one tool that can help you make a change.
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Downturn takes heaviest toll on younger Americans, by John W. Schoen, MSNBC.com