Texas residents who are looking to borrow money will take loans that are labeled as secured or unsecured. A secured loan is one that is backed by an asset such as a home or a car. If a borrower fails to make a payment on a secured loan, the lender has the right to take back the asset linked to the loan. For instance, if a person fails to make payments on a car loan, the lender can repossess the car.
Of all American cities, San Antonio is where millennials have the highest median debt. Those between the ages of 22 and 37 who live in San Antonio have a median balance of $27,122, according to LendingTree. While student loan balances make up the majority of that debt nationally, auto loans are the largest source of debt in San Antonio. On average, car loans make up 43 percent of what is owed to creditors.
When a person or business in Texas cannot pay debt, bankruptcy may be an option. This process allows for some or all debts to be discharged either through liquidation or through a repayment plan. Those who file for Chapter 7 bankruptcy will use the money obtained after selling non-exempt assets to pay off creditors. Debtors will likely need to take a means test to determine if they can afford to pay off some of their debts.
If you are a millennial, you may have concerns about your finances. According to the Wall Street Journal, two-thirds of millennials have at least one type of outstanding long-term debt. Having debt is not the only issue. Millennials are struggling to make payments and worry about accumulating too much debt.
In a recent study, more than 2 percent of credit reports had a medical debt of less than $200 sent to a collection agency. The study, which was published in the journal Health Affairs, looked at 4 million credit reports from 2016 to come to that conclusion. While these medical debts may seem small, they can turn into major issues for Texas residents who have them sent to collection.