Tennessee Bankruptcy Helps Members of Hard-Hit Generation X Get Back on Their Feet Post-Recession
The last half-decade has been tough on us all. But no one has more reason to complain than one group.
According to recently released data from the Census Bureau, people between 35 and 44 years old - often categorized as Generation X - saw the largest percent decline in median household net worth of any age group as a result of the economic downturn.
Between 2005 and 2010, Gen X households dropped nearly 60 percent in value. In comparison, the median household net wealth in all age groups fell by 35 percent.
The new information comes on the heels of Federal Reserve data that also illustrates a sharp decline in the median net worth of the American family - including a major drop of $126,400 from $77,300 in 2007 alone.
There are a number of reasons Gen Xers have taken a harder financial hit than other groups.
They had the misfortune of being the right age to be buying a home, and perhaps taking out a home equity loan, when prices were at their peak. As values fell - and continued falling - lost equity interfered with other financial decisions.
With growing children, Generation X naturally incurred more expenses than other groups. And as the older members of the generation begin helping their kids pay for college, costs will only go up.
People born after the 1960s are more likely to rely on credit cards to make ends meet. When income drops or expenses rise, it can be extremely difficult to break the cycle of credit card debt.
But there's hope for Gen Xers who are drowning in debt and in danger of losing their homes. Bankruptcy is the most powerful tool available for eliminating debt - and the only method provided by U.S. law.
Often times, families who stand to lose the most are the most wary of asking for financial help. But these days, filing for Tennessee bankruptcy is nothing to be ashamed of. Most bankruptcies arise from circumstances outside of a person's control, such as income loss or medical problems that led to credit card debt.
Bankruptcy has the ability to eliminate many forms of debt, allowing you to catch up on delinquent payments, rebuild credit, and protect against foreclosure.
When you're in the prime of your life, don't let debt slow you down. It's never too late for a fresh financial start.
More Blog Entries:
Gen X May Have Taken Biggest Hit in Economic Downturn, by Allison Linn, MSNBC.com