Millennials are struggling with debt and credit

The Millennial generation encompasses those aged 19 to 29. This group is generally lively and equipped to take on life's next adventure, but a recent study shows that they have their own unique struggles, including financial difficulties like credit card debt. This new trend suggests that they may need to rethink their current situations and identify the remedies they can use to improve their finances.

A report provided by Experian, a credit-reporting firm, reveals that Millennials have fewer credit cards than other age groups and that the amount of their credit card debt has actually decreased over the years. While this appears to be positive information, Millennials' financial situations are not hopeful at the moment.

The same study explains that Millennials in Mississippi and the rest of the country have a major problem: they are struggling with debt management. Trends show that they are likely to max out on credit cards and not pay bills, including credit card bills, on time. And, not paying bills on time negatively affects their credit scores. Millennials living in Mississippi actually have the lowest credit scores: 590.

There certain legal measures in place to help protect those facing financial challenges. Of note for the Millennials' situation, Congress enacted the CARD act: the Credit Card Accountability Responsibility and Disclosure Act. It is geared at helping credit card holders avoid late payments.

Pursuant to the law, creditors must provide the cardholder with a monthly statement. It must be delivered 21 days before the payment due date. If there is insufficient delivery, then a payment received after this date cannot be considered late. Mississippi Millennials may want to turn to and rely on such legal tools like the CARD act in these difficult financial times.

Source: wsj.com, "Millennials Wary of Borrowing, Struggling With Debt Management," Neil Shah, Nov. 20, 2013

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