Once known for their cautiousness with being burdened by financial obligations, millennials and their younger Gen Z counterparts in Connecticut and elsewhere in the U.S. are accumulating more debt. Some of this debt is student loan debt, which can be a “good” kind of debt since interest rates are usually low. It’s the rise in credit card debt among younger generations that’s especially worrisome.
A large chunk of credit card balances with 90-day or more delinquencies are owed by Americans between the ages of 18 and 29, the highest this figure has been in almost a decade. One of the reasons for the spike in millennial debt is the appeal of extravagant signup offers, some of which include perks such as travel credits. Interest rates, some of which can be as high as 25%, are also on the rise.
According to New York Fed data, delinquencies of more than 90 days are highest among individuals within the millennial age group for all types of debt. It’s credit card debt that’s more significant for millennials, ranking just above student loan debt. At one time, younger borrowers were more likely to shy away from even owning credit cards. Now, more than half of all U.S. adults in their 20s have credit cards. Simply owning a credit card isn’t “bad,” but younger adults with such cards are often encouraged to be among the 40% of credit card users who routinely pay balances in full.
Excessive credit card debt is just one of several reasons why a millennial may seek input and assistance from a bankruptcy attorney. A lawyer might also prove to be a much-appreciated resource if a millennial business owner is buried in debt. It’s important to note that bankruptcy does not excuse or eliminate all types of debt. Contact us today to learn more about filing for bankruptcy.