Many students, households have credit card debt
In addition to student loans, college students in Florida may also be carrying significant credit card debt. The student loan debt for 2016 graduates was $37,172 on average. On top of that, students may be paying over $1,000 in credit card interest and fees over the four years they are in college. The average credit card debt for students is more than $2,500. Students also tend to overdraw their accounts more than twice as often as other Americans and must pay overdraft fees when this happens. On top of this, students are graduating into a difficult job market although it is one that is slowly improving.
While the job market is recovering more slowly for new graduates than it is for other age groups, they still owe considerably less than their parents do. Overall, of households with credit card debt, the average amount of debt is more than $16,000. Furthermore, the cost of living is on the rise. Medical costs increased more than 50 percent and food and drink prices more than 30 percent from 2003 to 2016 while median household income went up less than 30 percent.
Millennials do appear to be fairly responsible with credit card debt. More than half pay the full amount due each month. The generation appears to have learned from the mistakes of their elders.
Regardless of age, debt can become overwhelming even for people who are financially responsible. In addition to struggling with student loan debt, people might have medical bills. Job loss and divorce may lead to financial pressures that make it necessary to use credit cards for necessities. Although student loan debts usually cannot be discharged in a bankruptcy, most other unsecured debts can be. A person who is struggling with debt may want to talk to a lawyer about the options available.