Delinquency On Credit Cards And Auto Loans Disproportionately Affects Millennials
A recurring theme in the generational rift between Baby Boomers and Millennials is that the generation that is currently approaching retirement age came of age in a time when it was much easier to find full-time jobs with stability and generous benefits than it is now. Furthermore, most of the trappings of middle-class life, from houses to cars to university education, were much less expensive when the grandparents of today were young. Americans born in the 1980s have never experienced reliable financial comfort. Millennials have lived precariously, juggling the gig economy with student loan debt, and those millennials who are parents are also dealing with their children’s expenses, which are much higher than what Millennials’ parents had to pay for their upbringing. A sustained period of high prices combined with decades of wage stagnation has created the perfect storm of debt for borrowers of all ages, but certain types of debt problems are more prevalent in certain age groups. If you are struggling with credit card debt, contact a Boca Raton debt lawyer.
How Bad Is the Debt Delinquency Epidemic Among Consumers Under 40?
According to Investopedia, the total debt burden carried by consumers in the United States is $16.9 trillion. This includes all kinds of debts, from student loans to home mortgages. Nationwide, consumer debt is at an all-time high, as it has been since the second quarter of 2020. More worrisome than that is the recent increase in delinquency on credit card debt and car loans. Delinquency is when a consumer is at least 90 days late making a payment on a debt. In the last quarter of 2022, 3.2 percent of borrowers in their 30s and 2.9 percent of borrowers in their 20s were three months late on credit card payments. In these same age groups, 1.2 percent and 1.4 percent of borrowers, respectively, were behind on their car payments.
What to Do If You Are Overwhelmed by Credit Card Debt or Car Loans
Some debts are easier to discharge in bankruptcy than others. For example, you cannot discharge federal student loans or overdue child support by filing for bankruptcy protection, but you can discharge credit card debt. In chapter 7 bankruptcy, the court has the right to sell some of your assets to settle your debts, but most applicants can complete the chapter 7 bankruptcy process without the court liquidating any of their assets.
Debt consolidation could be a better option than bankruptcy if you have employment income and you want to avoid the damage to your credit score that comes with a bankruptcy filing. With debt consolidation, you take out a low interest loan to pay off your credit card debt, meaning that, over time, you pay a lot less interest.
Work With a Debt Lawyer to Address Your Debt Problems While You Are Still Young
A South Florida debt lawyer can help you if you have been relying on credit cards for too long, and now you have a lot of adult responsibilities that make it difficult to keep up with the payments. Contact Nowack & Olson, PLLC in Boca Raton, Florida to discuss your case.