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Credit Card Debt: Younger Generations Will Take Longer to Recover

man and woman stressed holding documents with laptop

As restrictions lift, vaccines become accessible, and people start going back to work in the US, many expect that life will go back to normal as we once knew it. For some that could be true, but far too many Americans are still dealing with serious illness from COVID-19 or the lingering effects, or they are mourning the deaths of family and friends.

Just as younger students have had to deal with being out of school, with life as they know it completely disrupted to the point of becoming foreign (not to mention the changes for their parents too!), the Millennial and Gen Z crowd may be dealing with lingering financial stress much longer. This isn’t surprising considering many of them may have just gotten started in new careers and were quickly laid off, barely before they even got started due to the coronavirus. Along with that, many have student loan debts to deal with, plus navigating alternate ways to pay for all the basic bills in the face of suddenly limited income.

For millions, there were also previous debts to deal with too like delinquent auto loans or medical debt—and in fact, while medical debt has always been one of the top reasons for filing for bankruptcy, that trend is expected to be more true than ever. And while financial difficulty has undeniably hit every age group, younger generations may be feeling undue stress over credit card debt that continued to mount, especially if it was used as an alternative form of income during unemployment.

As bills continue to come in, debt collectors continue to call, and eventually process servers show up with the inevitable summons and complaint, this may seem like the pinnacle of stress. Sadly though, it may not be if the collection lawsuit is not dealt with. The priority is to consult with a legal professional as long as possible to answer any lawsuit. Without any action, there is much greater chance for a default judgment. This leads to a huge opening for financial vulnerability such as wage garnishments (up to 25 percent of disposable income in California), freezing of checking accounts, and loss of valuable assets.

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

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