Study finds young people likely to carry debt into old age
A recent study found that people who are currently in their late 20s and early 30s are likely to carry debt for a longer amount of time and more consistently throughout their lives than older generations. In fact, the study found that based on borrowing and payment trends, many people know in that age group are on track to have debt into their 70s.
The study examines the way that people charge and the way that they pay off debt, an unusual approach for research about debt. This model enables the researchers to accurately forecast payoff dates based on the overall pattern of debt accumulation.
It probably won’t surprise Atlanta readers, particularly those with experience in mortgage, education, and consumer debt, that young people are facing larger financial obligations than previous generations. In addition, the Great Recession has made it more difficult to afford those obligations, particularly when an investment in a college education or other post-secondary education doesn’t pay off as well as it used to.
In addition to the financial strain that this cycle can cause, debt also causes significant stress on the borrowers which can manifest itself through actual illnesses like migraines, anxiety, depression, ulcers, and back pain. Those who have faced mounting debt and aggressive collections practices by lenders know what a tremendous toll it can take.
There are a variety of options for borrowers who have taken on debt that they can no longer afford, including loan modifications and bankruptcy filings. For those struggling with debt from a mortgage, short sales and foreclosure are possibilities for relieving the burden and making it possible to move forward.
Source: Huffington Post, “Credit Card Debt” Study Predicts Millions Will Die In The Red,” Laura Rowley, Jan. 22, 2013.
Information about the different types of debt and what can be done is available on our law firm’s website.