The past year brought financial struggles of various kinds for many consumers. Because of global and economic circumstances, many lost jobs or saw a reduction in income. Others had to make adjustments with their lifestyles and needs. As a result, many consumers in Alabama and throughout the country accumulated a significant amount of credit card debt within the last year.
Credit card debt is not unusual. You, like many others, may enjoy using a card for its simplicity and beneficial rewards program. However, an unexpected situation could leave you relying more heavily on your card, and your balance could grow quickly with continued use and accumulating interest. Regardless of your age, income and job stability, a lot of credit card debt can negatively impact your life, leaving you looking for a way out.
A struggle for millennials
The problem with credit card debt is particularly prevalent for millennials, a generation that tends to rely heavily on credit cards for many types of purchases. More millennials say they have added to their debt burden since last March than those from older generations. The following percentages indicate how this demographic has accumulated this type of debt compared to other groups:
- Since March, 56% of millennials report more credit card debt.
- Over the past year, 46% of baby boomers have added credit card debt.
- Since March, 53% of Generation X say their credit card debt has grown.
Millennials are not necessarily making poorer financial choices than other demographics. For this group, sudden economic changes and other factors out of their control have affected their finances more directly. They are more likely to have experienced some type of compromise in their household finances than older credit card holders.
A way out
Credit card debt can be overwhelming for any consumer, regardless of age. If you are struggling to keep up with your payments each month, it may be beneficial to consider bankruptcy. This process offers a way out by allowing you to address different types of debt in an organized manner.
Credit card debt is unsecured debt, which may make Chapter 7 the most practical option for you if this is your main concern. However, there are other bankruptcy options available, and a careful look at your financial situation could help you see how you can make the best choice for your future interests and seek protection from creditors and debt collectors.