The name millennials refers to a generation of people born between 1981 and 1996. Now in their 20’s and 30’s, they are building up an enormous amount of debt as they reach young adulthood. Experts estimate $1 trillion of all debt in the United States is now held by millennials, which is an increase of 22% over a period of just five years. Along with a massive amount of bills owed, we’re seeing a sudden spike in bankruptcy filings by millennials, sometimes called Generation Y.
Are Millennials Filing for Bankruptcy at Higher Rates Than Others?
There’s no question that millennials are filing for bankruptcy at higher rates than other generations. People between the ages of 23 and 38 currently account for almost 40% of all new filings. The number one debt source for this group is credit card debt, despite the fact that Generation Y also has the largest amount of student loan debt among all generations.
Why are Millennials Filing for Bankruptcy?
Millennials are the first generation of people who have always lived on debt. Unlike Gen X, baby boomers and the silent generation, younger people find it very difficult to make it through modern adult life without taking on student loans, car loans, home loans and many other types of debt. Economic simplicity is almost impossible. Credit card offers are everywhere and everything from cell phones to furniture can be financed. The average millennial has about $36,000 in personal debt, plus a home mortgage if they have one. Student loan debt among millennials is an average of $34,500. It’s a massive amount of debt.
Will Millennials Ever Get Out of Debt?
Sixty percent of millennials don’t believe there’s any way they will ever pay off all of their debt in their entire lifetime, a sad statistic indeed. Although 79% of them say they have a plan to pay off debt, the reality is they don’t seem to be making much headway paying down the total amount. With limited budgets, they mostly make small monthly payments that cover interest and fees only.
Should I Consider Filing for Bankruptcy?
Whether you’re a millennial or not, sometimes there’s not much else you can do to protect your current assets and your financial future other than file for bankruptcy. If you acquired multiple credit cards years ago when you were 18 or 19 years old, you may now be overwhelmed with debt now that you’re hitting age 30. It’s over 10 years of trying to pay down accrued high interest rates without much relief. There’s no need to feel ashamed of your situation. Instead, take a positive step forward by resolving your debts with the help of an experienced bankruptcy attorney.
Sawin & Shea – Indianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 for a free consultation. We are ready to help.