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.
Do not feel bad if you are a young person who is struggling with finances. Filing for bankruptcy may be an option that gives you a necessary fresh start. Here are some reasons why millennials choose to declare bankruptcy.
1. Student loans
One of the core financial concerns for millennials is student loan debt. Over half of millennials age 30 or older have worries about paying off their student loans. It may be difficult to make ends meet when you have this huge debt looming over your life. While declaring bankruptcy might not clear your student loan, it is possible that clearing your other debts will make it easier to make your payments.
2. Medical emergencies
Just because you are younger does not mean you do not experience health complications. If you get in a car accident or get a shocking medical diagnosis, your finances may plummet due to unexpected medical costs. Even affording health insurance can be a challenge. Plus, coverage often does not alleviate the bills that much. You may not have enough savings to cover a health crisis.
3. Credit card debt
Millennials also struggle with credit card debt. Over 50 percent of millennials who have credit cards have carried balances and faced interest charges. It gets even worse when you have to pay for over-the-limit fees, late fees, and cash advance fees. You may accrue credit card debt by using your card to cover sudden expenses or by irresponsible spending habits. No matter why you get into credit card debt, you may find that bankruptcy is a viable option for getting rid of it.
Unfortunately, debt and millennials often go hand-in-hand. But the good news is that you do not need to go through your financial difficulties on your own.