Study shows young Americans have higher credit card debt than older generations

April 03, 2013 (Press-News.org) Study shows young Americans have higher credit card debt than older generations

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Many Americans continue to struggle financially, despite reports that the economy is in an upswing. In many cases, to help prevent imminent financial hardship, people have amassed credit card debts to help them get through this difficult time.

According to a study conducted by The Ohio State University, certain groups of people are more likely to take on large amounts of credit card debt than others. The researchers found that people born between 1980 and 1984 tend to have higher credit card debts and take a longer period of time to repay the debt than older generations.

In fact, the researchers found that, on average, those in their 20s and 30s have $5,700 more in credit card debt than their parent's generation and $8,200 more than their grandparent's generation. In addition, the researchers predicted that many in the younger generation will continue to amass credit card debt until they are in their 70s.

Consequently, it should come as no surprise that some younger Americans have reported that they are worried about applying for credit cards. According to a Sallie Mae and Ipsos Public Affairs survey, 39 percent of college students between the ages of 18 and 24 had a credit card in 2012 -- a 10 percent decrease from just two years prior.

Failing to apply for and use a credit card can have challenging consequences later in life, however. Despite the younger generation's concerns about going into debt, those lacking a credit history could find it difficult to get a home mortgage or loan when they get older.

Therefore, it is important for people of all generations to understand that there are options available when managing credit card debt seems overwhelming, including filing for bankruptcy.

Discharge your credit card debt by filing for bankruptcy

When someone has amassed a large amount of credit card debt and cannot see a way to resolve the problem, filing for Chapter 7 or Chapter 13 bankruptcy may be the best alternative.

Chapter 13 bankruptcy allows an individual to establish a repayment plan, which typically provides for a period of three to five years during which he or she repays certain debts. Chapter 7 bankruptcy is often a wise alternative for those who own few assets and do not have high income. Most importantly, credit card debt is dischargeable through both types of bankruptcy.

If you are facing mounting credit card debts and are uncertain about how to regain your financial stability, consulting with an experienced bankruptcy attorney will help you get on the right path.