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Millennials are suffering under the burden of credit card debt

People in Tennessee may find that having a credit card can be both a bonus and a burden. On one hand, credit cards can be useful when we are in a financial pinch and cannot afford to pay for something outright. If we pay the full balance of our credit cards each month, it can increase our credit score -- another bonus.

However, it doesn't take much for credit card debt to become burdensome. It takes only one financial disaster, such as a medical emergency or a lost job, before the balance on our credit cards starts to build. This is especially true if we are forced to use credit cards to pay for basic life necessities, such as food and utilities. Combine that with skyrocketing interest rates, and it's easy to see how credit card debt can become overwhelming.

The Millennial generation is the newest group that is starting to feel the burden of credit card balances they cannot afford. While from 2008 to 2012, only 41% of people in their 20s owned a credit card, that number has since increased to 52%. Even more significantly, in the first quarter of 2019, 8% of Millennials had credit card debt that was in delinquency -- the highest for any age group.

Credit card debt can be overwhelming, but there may be options to address such debt. One is filing for personal bankruptcy. Through a Chapter 7 bankruptcy, the debtor's assets are liquidated, and the proceeds used to pay their debts, after which much of their remaining debt will be discharged. In a Chapter 13 bankruptcy, the debtor establishes a court-approved three to five-year repayment plan that allows them to catch up on their debts. Once the repayment period is up, much of their remaining debt will be discharged.

Of course, filing for bankruptcy is complex and this post cannot promise any specific outcome to a person's case. Millennials trapped under a mountain of credit card debt may want to seek the guidance of a bankruptcy attorney to determine if bankruptcy is right for them.

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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