Those who need help getting their finances in order could do so by filing for bankruptcy. In most cases, a debtor in Texas or any other state will file for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is for those who have unsecured debts and make less than the median income in their state. It generally takes about three to six months to have debts discharged.
While some Texas millennials might be burdened by student loans, far more are likely to carry credit card debt. According to a report from CompareCards.com, only 37% of millennials around the country said they had student loan debt compared to 67% who had credit card debt.
Personal beliefs often motivate people in Texas to avoid bankruptcy even if the struggle to pay debts becomes overwhelming. However, bankruptcy can be a positive decision that gives applicants a second chance. The process could include financial counseling that helps people eliminate bad money habits and avoid debt in the future.
People in Texas may have options for defending themselves when sued by debt collectors. If a debtor takes no action to respond to a lawsuit, a judge will side with the plaintiff, who is the debt collector. The resulting judgment could give the collector the right to garnish the debtor's wages or seize his or her assets. To potentially prevent this default judgment, a debtor could demand that the plaintiff show documentation that proves the right to sue in the first place.
Many people in Texas have around three or four credit cards. A study by The Ascent found that, on average, millennials have three credit cards while baby boomers and Gen Xers have four. In all age groups, 1 in 10 people said they had six or more credit cards. There are advantages and disadvantages to having multiple credit cards.
Young adults in Texas and elsewhere in the United States are increasingly burdened by student loan debt, which is at an all-time high according to a leading consumer credit reporting agency. But millennials are also struggling with other types of debt, including credit card debt. While borrowers within this age group generally avoid credit cards, they're sometimes lured by appealing offers and perks.
People in Texas who are struggling with credit card debt might want to consider a personal loan to pay it off. It is not always necessary to have excellent credit to get a personal loan that has better repayment terms than the credit card. Another option is a balance transfer to a credit card that offers an APR of 0%.
While many young people in Texas and across the country used to be known for avoiding debt, a growing number of younger Americans are facing difficulties repaying their credit card bills. According to a report by the New York Federal Reserve, overdue payments are rising among Americans age 18 to 29. Because millennials came of age during the financial crisis of the late 2000s, many of them have been hesitant to embrace significant debt. However, young people are also entering high-paying professional jobs, and they may feel better placed to pay off their credit card bills.
For many people in Texas and across the country, treatment for a serious medical condition can be accompanied by financial disaster. Medical debt is a major burden affecting many Americans; it is one reason why people decide to file for personal bankruptcy. Even people with health insurance may face significant medical bills, especially if they require expensive prescription medications or specialized treatment provided by an out-of-network hospital. There are a few tips that people can keep in mind to help minimize their exposure to health care debt.
For people in Texas facing a serious medical diagnosis, debt may be a major concern. Medical debt poses a serious problem for far too many Americans, even those with health insurance. Around 20% of insured Americans continue to struggle to pay off medical debt. Many providers may be considered out-of-network, and the costs of prescription medication alone can skyrocket dramatically.