According to TransUnion, roughly half of Americans between the ages of 18 and 24 have a credit score of at least 661. Therefore, lenders in South Carolina and throughout the country have made it a priority to connect with younger borrowers. Previous data has shown that a 24-year-old has an average of $2,000 in credit card debt. Furthermore, 41% of individuals between the ages of 18 and 24 have at least one credit card.
There had been some concern that younger Americans would be less eager to borrow money as they grew up during the Great Recession. While a willingness to borrow money could be good news for banks and other lenders, it can be detrimental to a young person’s ability to grow his or her net worth. Millennials currently have 2.9% of the nation’s wealth, and their financial standing was influenced by a willingness to take on student loan debt.
Individuals who have credit card debt may struggle to pay down those balances in a timely manner. This is partially because credit card debt can come with an interest rate of 15% or more. Anyone who is having trouble making minimum monthly payments may want to file for bankruptcy. Doing so might result in the debt being discharged in a matter of weeks or months.
Furthermore, a debtor may be able to do so without making payments to creditors or losing any property. An attorney might be able to explain the different types of bankruptcy and the process of filing for protection from creditors. Typically, those who file will receive an automatic stay of creditor contact. This means that a debtor won’t receive phone calls or letters from a creditor or be subject to other collection activities such as a lawsuit or repossession.
