Young people in New York and across the country are facing a growing debt burden. While millennials were once known as a generation averse to borrowing, especially after they came of age during the financial crisis of 2008, an increasing number of young Americans now owe a significant amount to credit card issuers. Of greater concern is the indication that more of them are also having trouble paying their bills. Americans aged 18 to 29 now have a greater amount of debt overdue by at least 90 days than at any time in the past eight years.
Indeed, 8% of all credit card debt held by people in this age group is at least 90 days overdue, which points to serious concerns about delinquency. There are many reasons why people fall behind on their credit card payments. Many individuals open a new card after their financial situation improves and they begin working at a more highly paid professional job. They feel certain that they will be able to repay any debt. However, changing circumstances can confound these plans. People dealing with job loss, medical problems or other issues may be more likely to fall behind on payments. In addition, unpaid credit card debt continues to grow due to relatively high interest rates.
Experts note that it can be very difficult to get out of credit card debt, even when bills are paid on time. Over 50% of all people with credit card debt wind up owing it for more than one year and 37% for at least two years.
Of course, the issues with credit card debt are not limited to young people. Americans of all ages face a severe burden. Someone struggling to make ends meet can consult with a bankruptcy attorney about potential options for debt relief.