How Debt Breaks Down In Today’s Age
Almost half of the American population has been carrying a credit card balance for at least two years. Let that sink in. Debt has continued to get worse over the years. The problem with debt isn’t that it’s increasing, rather it is about debt not being resolved. Debt seems to linger on for years in this age, either due to human forgetfulness, our inability to pay or our lack of knowledge of the debt to begin with. The general practice of a creditor would be to pass the debt off to a debt collector. In some cases, a debtor can be sued for the amount of money they owe if they don’t pay it back in time. However, this isn’t a common practice as many debts are too small for many creditors to want to pay legal fees to chase after. When you consider the fact that the average older millennial (aged 25 – 34) harbors the most debt out of any ager demographic (with a median amount of $42,000), it’s surprising that more people aren’t taken to trial for their debts. It makes you wonder how debts these days are broken down.
How Modern Debt Breaks Down
As the times have changed (and ages for that matter) the main sources of debt have evolved. Once credit cards became one of the major sources of payments among consumers, credit card debt started to grow over the years. With the older millennial demographic taking on more responsibility than when they were in their twenties, they have the capacity to garner more debt from changing circumstances than any other age group. Gen Z individuals don’t have as many financial responsibilities, and notably less debt. Gen X individuals (ages 35 – 49) mainly have to worry about a mortgage as they are the main homeowners among all age groups.
Where Does the Problem Start
Why is it that debt isn’t being handled well in the present? There may be a variety of reasons for lingering debt, like salaries that don’t keep up with the rising cost of living in general. Also, the more that we learn about our debts, the less we feel obligated to attempt to pay off debts when we cannot financially handle them. While this an educated guess, it’s a good one. In more recent times, it can be argued that knowing more about debt and whether it can affect you can give you reason to not deal with them. Debt should never be made to linger on. If you find that your debt is getting out of control, don’t hesitate to contact Guardian Debt Relief to get the help you need.