Credit card debt is a problem for many consumers in the US, tempted by wallets growing fat with plastic at the ready after being offered a wide range of different benefits and rewards. The average household in the US has over $7,000 in credit card debt today, and while issues in making payments may often be relegated to older consumers who have had more time to run up large bills or deal with more unexpected life events such as illness, divorce, and massive student loan debts, millennials are feeling it too.
Recent news states that those between the ages of 18 and 34 today may also be feeling unusually constricted by growing credit card debt and debilitated by poor credit. While there is much talk about millennials not wanting to buy cars or homes or other big-ticket items, the truth is that many just cannot due to a lack of funds—or as Experian points out, their credit scores will not allow it. This age group is feeling a bite out of their budgets from student loans too; in fact, just the average student loan payment alone is usually over $350. Graduate students may even be hundreds of thousands of dollars in debt, making it challenging to pay the essential bills such as rent or mortgage, vehicle loans, health insurance, utilities, prescriptions, and more.
Data shows that nearly half of millennials are stressing about money and credit scores, and dealing with challenges in buying cars, renting homes, and taking out other loans. This group often characterizes their financial issues as ‘unmanageable,’ and 24 percent blame their current financial problems on a lack of education early on regarding money management. Around fifteen percent also state that they ‘regularly’ miss credit card bill payments.
Delinquencies often lead to collections lawsuits, which can mar credit for years. While this is difficult for consumers at any age, younger consumers should be working on building credit rather than seeing it go downhill prematurely. A collections lawsuit, if not handled properly by a skilled attorney, can lead into a default judgment—and fast! If you find yourself served with a lawsuit, get legal help fast so that you can avoid wrecking your credit, along with having your paycheck garnished, checking accounts frozen, or property seized and sold off at public auction.
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.