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Young adults face higher credit card debt than their elders

As many Chattanooga residents know, after sinking into debt, paying off the money can be very difficult. Many young adults are now learning that they may be living with credit card debt for most, if not all, of their lives.

It seems that young adults, those that were born between the years of 1980-1984 will owe $5,689 more than their parents and $8,156 more than their grandparents. That amount of debt is a problem but the bigger problem is that they are also much more likely to only pay the minimum payments or close to them. The same studies that showed these numbers also indicate that those young adults will likely be charging purchases into their 70s and could even die with owing money to a credit card company.

For these young adults, there are many reasons for these spending habits, not necessarily just due to recklessness. It is likely that they are facing significant financial challenges, such as unemployment or reduced income, medical expenses, student loans and possibly even other types of consumer debt. For some, these burdens may be impossible to avoid. There are many different types of debt relief but filing for bankruptcy may be one of the only ways out from under that much debt. Bankruptcy would completely eliminate much of the debt, with the likely exception of student loans. As for student loans, there are other types of payment plans, so speaking directly with the creditors is the best option.

Dealing with debt is a difficult task for many people, no matter what age. Seeking out assistance is often the first best step to becoming free and clear of money worries.

Source: U.S. News, "High Medical Bills Driving Some Americans to Extreme Measures," Karen Pallarito, Jan. 18, 2013

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
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