Financial difficulties can strike people of any age and socio-economic class. Although many individuals later in life find themselves with money troubles after suffering the loss of a job or the onset of an unexpected illness, even young adults can find themselves falling into deeper and deeper holes of debt. When this happens, indebted individuals may struggle to see a way out and secure the financial freedom they need and deserve.
This problem may be growing more common amongst young Americans, too. According to a recent study, Millennials carry an average of $28,000 in personal debt. This figure excludes mortgage debt, which makes the number even more staggering. A lot of this debt can be attributable to student loans, but a growing share of this debt comes from credit card use. Some financial experts say that Millennial’s are unwilling to forgo a heightened standard of living in exchange for avoiding dead. They claim that this has spurred Millennials to take on more credit card debt then proceeding generations.
This type of debt can impact a young individual’s life in many ways. To start, it can make it even more challenging for him or her to secure mortgage funds to buy a house. Additionally, these individuals are less likely to be able to pay off medical expenses when they arise. Also, Millennials are not as dedicated to building their retirement plans as older generations, likely because they are hampered by personal debt and stagnated wages. In fact, the study mentioned above found that about two-thirds of Millennials are living paycheck to paycheck, and only 38% of them feel like they are financially stable.
Dealing with overwhelming debt can be draining on many levels. Of course, debt can create financial concerns in both the short and long-term, but it can also create a tremendous amount of emotional stress. Far too often individuals dealing with this type of debt find themselves clawing to try to escape its pull only to find themselves slipping deeper. To avoid this type of situation, Millennials and other individuals who are facing insurmountable debt may want to consider seeking out bankruptcy protection. Whether an individual chooses to seek out Chapter 7 or Chapter 13 protection, a skilled legal advocate may be helpful in navigating the process successfully.