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Younger Generations Left with Debt and Collection Lawsuits

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It is often pointed out that COVID-19 does not discriminate. Anyone could feasibly contract the illness still spiraling out of control and become extremely sick, or even die. This goes for finances too as millions of Americans lost their jobs. While individuals who had been in the work force for decades suddenly lost or lived in fear of losing livelihoods they had spent many years cultivating, many young people lost their first jobs too.

“The pandemic has been especially hard on Gen Z,” said Barney Hussey-Yeo, CEO of Cleo, a money app with a large following of younger users. “Many are only just entering the workforce. Near-zero interest rates, and an increasing cost of rent aren’t helping them either.”

Even worse, as parents and older relatives became ill, a growing number of younger adults have had to give up their normal lives to care for those who have been sick, or they may have had to take on other jobs unrelated to their interests or majors just to make money to help support their families. Baby Boomers are also having to deal with such issues, unfortunately.

“Both generations are much more likely to fall into a group known as the ‘sandwich generation,’” said Dino Selita, president and co-founder of The Debt Relief Company. “Boomers and Xers are more likely to have to take care of a growing family while also having to take care of their elderly parents.”

Credit card debt may be a major problem too, being used lately for many out of work, with available balances being used as an alternative form of income. Of course, the obvious problem is that credit cards run out fast, and then creditors and debt collection agencies come chasing you for money. If you are being sued, get legal help as soon as possible. This is important because without any reply to a summons and complaint, and without showing up in court, a default judgment could be granted against you almost immediately.

Such legal action may not seem like much to bother with if you feel like you have nothing to lose right now but the problem is that may not be the story for the next 20 years—and that’s how long a default judgment can stick with you as it is initially good for ten years and then can be extended for another decade.

By consulting with an attorney and responding to any lawsuit within 20 to 30 days, you may be able to avoid the repercussions of a default judgment, including wage garnishments, and levying of property and financial accounts.

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 issuesbankruptcy, 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 info@debtorprotectors.com.

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