The younger generations won’t be getting out of debt anytime soon. From credit card debt to student loans, to mortgages, US citizens from the ages 18-29 are in cumulative debt over $1 trillion. And while there may be questions regarding the prudence in allowing less experienced, less mature consumers to keep borrowing and accruing debt, the reality remains that they will be dealing with financial burdens for decades.
Financial burden is a major reality when it comes to student loan debt. The student loan crisis spans all ages, but as so many young people tend to exit high school and head right into college, the younger age bracket is much more impacted. With more than $1.74 trillion owed by over 45 million borrowers, it’s common for finger-pointing to ensue over exactly how the economic situation became so dire. One of the major contentions is that schools and lenders are preying on rising students who are signing on the dotted line eagerly, knowing very little about what it takes to pay back hundreds of dollars per month and manage a household budget that obviously includes a range of other bills too.
The same basic tenets could apply to credit card accounts too; however, it’s no secret that account holders of all ages may have trouble managing the temptation to max out balances. These days though, with COVID-19 threatening the US, a large portion of financial issues are due to unemployment and dealing with medical debt too. Since 2020, most of us could be hard pressed to find a problem that isn’t related to COVID.
“Debt can be an important tool towards managing opportunities, and for Gen Z and millennials, life experiences like weddings, trips, educational classes and philanthropic support are all viewed as very worthy and satisfying ‘investments’ compared to previous generations,” said Kayly Gerowski, associate director at Pathstone. “What this means is that old metrics of allocating approximately 33% of income towards housing is now being reduced to accommodate ‘wants’ elsewhere.”
Unfortunately, that type of debt can lead to an incredible amount of stress too. If you are being sued due to credit card debt or private student loan debt, speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible. The key is to act quickly so that a default judgment is not filed against you.
Contact Fitzgerald & Campbell, APLC now. Let us review your case and discuss what would work best for you. We are here to help! Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Click here to schedule a free 30-minute consultation, or call us at (844) 431-3851, or email us at info@debtorprotectors.com.