For some time now, younger adults — those labeled millennials — have done a better job than their older counterparts when it comes to staying out of debt. According to a recent report, that is no longer the case. Numerous 18 to 29-year-olds in Illinois and across the country have begun taking on significant amounts of credit card debt. What is behind this new trend?
According to a recently released report, the number of millennials who are 90 days past due on their credit card payments or who are utilizing more than 8% of their available balances has reached an eight-year high. Some believe this is because more individuals in this age group are being enticed by the bonus offers and other incentives promised by credit card companies. While there is nothing wrong with using credit cards in order to collect these incentives, carrying a balance can keep one in debt for years to come.
As it currently stands, only 40% of millennials are paying their credit card balances in full each month. For those who are carrying balances, they see the amount that they owe increase daily due to sky-high interest rates. Experts believe that this increase in credit card debt and the inability to pay it off before interest is tacked on is not because this age group is being irresponsible with their money. Many are using their credit to pay for their most basic needs.
Once people find themselves in serious credit card debt, they may find it seems impossible to pay off what they owe. Illinois residents in this position do have relief options available to them. Bankruptcy, for example, can result in the discharge or reorganization of debts. An experienced bankruptcy attorney can review the details of one’s economic position and assist one in utilizing the relief option that would best suit the situation.