Finding and maintaining financial security as a millennial can be difficult. According to a recent study, people between 25 and 34 years old have $42,000 in debt on average. If you are a millennial dealing with debt, you may start to consider filing bankruptcy.
If that is the case, you are not alone. In fact, millennials are declaring bankruptcy at a faster rate than other age groups. Here are some common reasons why more and more millennials are looking to bankruptcy to resolve their debts.
Credit card debt
Most debt among millennials is from credit cards. You may find yourself in a situation in which you need to rely on credit cards more. Plus, it can be easy to mismanage credit cards or only pay the minimum amounts. If you are at the point of using credit cards to pay off debt or cover basic living expenses, filing bankruptcy may be a way for you to escape the revolving door of debt.
If you are like many other millennials, student loan debt can haunt you for a long time after college. You may assume that getting an education will help you achieve financial success, but loans can keep you struggling for years. Student debt accounts for approximately 16% of the average millennial debt. While bankruptcy typically does not discharge this type of loan, declaring bankruptcy may free up finances so that student loan payments are more affordable.
It can be tough to make a living in today’s economy. Wages are not keeping up with the increasing cost of living. Bankruptcy may be a good option if you are seeing your expenses increase while your income is not able to keep up.
Poor money management
Sometimes, the misuse of funds is a contributing factor to debt. It can be hard to manage finances properly, especially in a consumerist society. If this is the case for you, there is no reason to feel ashamed. Bankruptcy is a tool designed to help you get out of debt and have a fresh start.