Consumer debt continues to reach historic highs in the US, with last year’s spending continuing to outpace all other years. Recent news shows overall debt hovers around $13.3 trillion for consumers with unpaid revolving debt at $4.1 trillion. Mortgage debt continues to rise, and the same goes for student loans and credit cards.
Millennials play a significant role in all these numbers and the spending, with collective evidence demonstrating that their average credit card debt has increased by 7 percent. While that may not sound like much, it is an enormous statistical increase and shows that millennials may not be as credit card shy as their stereotype generally portrays. Such increases also mean the potential for more delinquencies and defaults, along with collection lawsuits from aggressive creditors and debt collection agencies; in fact, it is currently to be expected that a 23-year-old millennial may almost triple their credit card debt by the time they are 38.
Student loans present an unbearable burden for many within the millennial age group also, as average 20- to 30-year-old borrowers are carrying average monthly payments of over $350, owed to student loan servicers, many of which may be private loan servicers waiting to see significant debts satisfied eventually—and especially if graduate school was involved. Just as credit card corporations are aggressive in collections activities, private loan servicers can be similar. Both types of lenders are capable of not only pumping out voluminous numbers of lawsuits but also attempting to cash in on their power when default judgments are granted.
Millennials being sued may be deeply unhappy to find that without enlisting the help of a skilled collections attorney and creating a reply, the repercussions of a collections lawsuit can cause more than just great inconvenience. Without an answer to the summons and complaint or an appearance in court, defendants usually have default judgments granted against them swiftly, causing wages to be garnished (with up to 25 percent of disposable income allowed to be deducted), valuable assets taken and sold at public auction, and financial accounts frozen until debts have been paid. Such action can be halted with the help of an experienced attorney who may be able to file a motion to vacate and then backtrack to defend the original case.
Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at email@example.com.