The so-called millennial generation has been described in multiple ways, and “financially savvy” would have been one such descriptor. Unfortunately for Tennessee residents of a certain age, those days are apparently over, with credit card debt showing a sharp rise among millennials. In an uncertain economy, there are multiple tactics millennials can use to overcome credit card debt, including debt restructuring, counseling and even bankruptcy.
From 2008 through 2012, fewer than half of all millennials even had credit cards, but since then, the trend has risen considerably and disturbingly. Some 8% of millennial credit card balances were denoted as “seriously delinquent,” far higher than any other age group. When added to the $370 billion in student loans already shouldered by this generation, additional financial burdens can be problematic at best and catastrophic at worst.
It is widely understood that credit card debt can be one of the most damaging, as it does not contribute positively to equity and carries a high interest rate (usually some 17% per annum). Unfortunately, for many millennials, the realities of a struggling economy on the tail of the 2008 recession has meant that accruing debt of this type became a reality of day-to-day life. This is why it is so important for millennials to carefully consider their financial options in bringing their debt down to manageable levels.
Contrary to popular belief, credit card debt is not always accrued as a result of poor financial planning. For Tennessee residents of any age, unexpected expenses like medical bills or an unforeseen stretch of unemployment may mean relying on credit cards to get through the day. In some cases, Chapter 7 bankruptcy can help to clear that accrued debt through asset liquidation and debt forgiveness, allowing a borrower of any age to regain his or her financial footing quickly and efficiently.