Higher levels of credit card debt among young consumers

Due to societal changes and developments, greater levels of responsibility and freedom for young people, and other factors like the economic recession, young adults throughout Mississippi and the rest of the country are increasingly using credit cards and accumulating large amounts of debt. Unfortunately, the large amounts of credit card debt that can so easily be accumulated during college years can have serious effects on the financial stability and well-being of people as they age.

A recent study by an economics professor at Ohio State has concluded that while many college-aged students open credit card accounts with the goal of building credit, the result ends up being levels of debt that they may never be able to pay off. The researcher examined the debt levels of people born between 1980 and 1984 and found that this age-group has approximately $5,500 more credit card than their parents' generations and $8,000 more than their grandparents' generation.

One factor contributing to the rise in credit card debt is likely the ease of obtaining a credit card compared with past generations. Another factor is likely the economic recession, which has forced many Mississippi residents-young and old-to rely on credit cards during times of unemployment, salary cuts or other unexpected circumstances. Because high levels of credit card debt can occur for many different reasons, bankruptcy should be considered a viable option for those struggling with mounting bills, huge interest payments, and the harassment of a credit card company.

Although there are different debt relief options depending on each person's unique situation, Chapter 7 bankruptcy and Chapter 13 bankruptcy are two ways consumers can rid themselves of crushing debt and start fresh. Chapter 13 bankruptcy enables consumers to repay debts according to an established plan during a three- to five-year period. If certain conditions are met during the repayment period, Mississippi consumers can discharge the remaining debt at the end of the repayment period. Chapter 7 offers individuals a different option that can completely eliminate credit card debt. After a careful analysis of their financial situations with the help of a bankruptcy attorney, Mississippi residents can find a way to return to financial stability.

Source: Lantern, "Ohio State study says credit card debt becoming tougher to pay off," Alexandria Chapin, Jan. 23, 2013

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