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.
One of the reasons why San Antonio tops the list is because local wages are lower than in other cities. Someone who is living in San Francisco may have found their first job out of school or are otherwise established in their careers. This gives them the opportunity to pay down debt even if the cost of living can be higher there. Austin is third on the list with a median debt of $26,164 for those born between 1981 and 1996.
In Austin, credit card debts make up the majority of what is owed to lenders. This could be problematic because younger people may not get the same terms that older borrowers are offered. However, for those who need to drive, having an auto loan may not be avoidable. Therefore, it is important for younger borrowers to shop around to get the best loan terms.
Individuals who are struggling to keep up with auto or other debt payments could benefit by filing for Chapter 13 bankruptcy. This may allow them to keep their property while paying creditors under the terms of a bankruptcy plan. During the three or five years that the payment plan lasts for, creditors are generally unable to contact debtors or file lawsuits. An attorney could help an individual determine if he or she is eligible to file for Chapter 13 protection.