Most At-Risk Group for High Credit Card Debt

  1. Credit Card Debt
  2. Most At-Risk Group for High Credit Card Debt
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Are you in the most at-risk group for high credit card debt? According to data released from the Federal Reserve bank of New York in February 2021, younger Americans appear to be the most at risk for high delinquency rates.

Recent Data Shows Credit Card Debt in the U.S. is Out of Control:

  • During the financial crisis of 2008, debt surpassed the $870 billion peak.
  • Credit card debt in the U.S. hit an all-time high of $930 billion in the final quarter of 2019.
  • The data shows a $46 billion increase in credit card balances from the previous quarter and an increase of a shocking $57 billion over the same period in 2018 (only one year prior).
  • Credit card delinquency rates increased .16% from the previous quarter to 5.32%.
  • Younger Americans (age 18-29) had the highest delinquency rate of 9.36%.
  • The delinquency rate for the 19-29-year-old age bracket came in 76% higher than the total average credit card delinquency rate.

Younger American Consumers Face an Increased Risk of Debt:

It’s easy to see the problem the younger demographic is facing when the delinquency rates are broken down by age:

  • 18-29: 9.36% credit card delinquency
  • 30-39: 6.05% credit card delinquency
  • 40-49: 5.64% credit card delinquency
  • 50-59: 4.79% credit card delinquency
  • 60-69: 4.34% credit card delinquency
  • 70+: 4.26% credit card delinquency

Why Are America’s Young Adults Drowning in Debt?

There are many reasons debt can snowball towards unmanageable levels. Regardless of your age, you can be affected by these factors, but many of today’s younger adults are more likely to both face these issues, face more of these issues simultaneously and respond to the issues in a way that leads to debt.

  • Poor Money Management
  • Spending More than You Make
  • Divorce
  • Underemployment
  • Gambling
  • Medical Expenses
  • Overspending
  • School Loans
  • Lack of Savings

Seeking Solutions to Overwhelming Debt:

Young adults seeking solutions to overwhelming debt tend to assume their financial struggles are temporary. They’ll get a better job soon. Their promised raise is going to come through any day. They can’t get hit with “unexpected expenses” every month. When the problem is considered temporary, most will turn to a temporary solution. However, in many instances, overwhelming debt is not a temporary situation, so temporary solutions like borrowing money to cover shortages, paying bills on credit, etc., are not the most effective means of addressing the problem.

If you have questions about filing Tennessee or Georgia bankruptcy and want to discuss how bankruptcy can offer a more permanent solution to getting out of debt, contact an experienced bankruptcy attorney. Don’t hesitate to call Kenneth C. Rannick, P.C., Tennessee, and Georgia bankruptcy attorney. We help good people through bad times.

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