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Why Are Millennials Struggling With Credit Card Debt?

WGEM-TV had a troubling story recently saying that nearly half of American millennials have applied to credit cards recently due to advertising and promotions by lenders. Photo of calculator and bills

According to the television station, the data comes from a survey conducted by NerdWallet, which also indicated that the average debt for an American in his or her late 20s is $45,000 (this includes student loans, credit card debt and other forms of financial obligations).

These debt burdens are greatly affecting many young people, who are less likely to be able to obtain loans for properties including homes and cars. A financial expert WGEM talked to said that once a young person signs up for a credit card in America, their credit often improves slightly and they are then inundated with offers for more credit lines. This can cause a snowball effect for debt.

To avoid issues with debt, experts said that millennials should apply cautiously for credit cards and wait the appropriate amount of time between applications, limiting the amount of times they use the cards they have.

Getting Rid of Credit Card Debt Through Bankruptcy

People who have a tremendous credit card debt should know that they have an option in bankruptcy.

Through a Chapter 7 bankruptcy, you can discharge unsecured debts like credit card debt and medical bills. One advantage of bankruptcy over other forms of debt settlement is that you do not have to pay income taxes based on debt discharged. Additionally, when you file for bankruptcy, creditors can no longer harass you, as an automatic stay goes into effect that puts an end to collection attempts.

Our Lewisville lawyers can help you start over financially and escape the burden of overwhelming credit card debt through bankruptcy. You can reach us by calling (972) 315-6222 or by using the case review form located on this page.

Shuster Law Firm PLLC – Lewisville Bankruptcy Attorneys

Source: http://www.wgem.com/story/29956757/2015/09/03/credit-cards-pushing-millennials-debt-even-deeper