A recent study indicates there is one type of debt that might loom particularly large for older millennials. It may surprise you to hear that it is not student loan debt. Rather, it is credit card debt.
The study was by Northwestern Mutual. Among the things it looked at was how much of the average debt burden of older millennials (individuals ages 25-34) was credit card debt. The study found that such debt made up about a fourth of this burden. In comparison, only around 16 percent of the average debt burden consisted of student loan debt.
Why does credit card debt have such a big presence in the finances of older millennials? Factors put forward as possible contributors include such individuals taking on larger expenses than their younger counterparts and credit card debt repayment not being prioritized.
How big of a credit card balance a young adult has can be very impactful. Credit card interest rates tend to be high, so large balances can lead to very burdensome interest payments. Missing payments can make the situation even more serious, as it can trigger fees and interest rate increases.
So, it can be critical for older millennials, and adults of any age for that matter, to be careful when taking on credit card debt and when deciding how to deal with such debt. It can be important to take measures to keep such debt from reaching the point of being overwhelming.
If individuals do find themselves facing overwhelming credit card debt, there can be various routes for addressing the matter. Finding the right one for the circumstances is important. Skilled bankruptcy attorneys can give people dealing with credit card debt problems guidance on the different debt relief mechanisms out there and how good of a fit they would be for the situation at hand.