You may not be aware that the number of millennials filing for bankruptcy is growing at a significant rate. This particular generation was born and raised during a very prosperous period (1980-2000). Still, many now find themselves drowning in debt with no particularly viable method of digging their way out on their own.
Why Are So Many Millenials Buried in Debt?
Older generations regularly toss around jokes about “millennials.” People falling into this generational definition tend to be the butt of jokes about poor lifestyle choices, being outrageously spoiled, and simply choosing not to grow up as they age. Due to these stereotypes, many upon hearing that the number of millennials declaring bankruptcy is on the rise will immediately scoff and blame their poor lifestyle choices, spoiled nature, irresponsible actions, etc. However, the truth is that many millennials that are buried in debt can easily trace their path down the road to financial struggle back to the rippling effect of student loan debt.
The student loan debt held by millennials is significantly larger than the typical student loan debt held by older generations. Additionally, most millennials entered the workforce after the Great Recession hit. At the time they were leaving school and looking for a “grown-up” job, the jobs offering a livable wage proportionate to the millennial’s education (and student loan debt balance) were rare.
Many quickly found themselves facing the harsh reality of living paycheck to paycheck, having no money left over to put into savings, and learning how easy it is to obtain credit cards. More than 50% of millennials who hold student loan debt are anxious about their inability to pay the debt. Many turned to credit cards (usually with high-interest rates), auto title loans, payday loans, or rent-to-own financing to make ends meet.
How Can Bankruptcy Help Millenials with Overwhelming Student Loan Debt?
Bankruptcy cannot wipe out federal student loan debt, but bankruptcy can wipe out credit card debt and other loan debt. Consumer debt can be discharged outright when filing Chapter 7 bankruptcy and managed through Chapter 13 bankruptcy. By effectively relieving millennials of their “other” debt, bankruptcy can give them a hand up out of impossible financial situations.
Are You Overwhelmed by Student Loan Debt?
If you are buried in student loan debt and need to discuss how filing for bankruptcy could change your situation, we can help. Trust the experienced Tennessee and Georgia bankruptcy attorneys at Kenneth C. Rannick P.C. We help good people through bad times every day, and we can help you, too.