Orantes Law Firm
New study says younger people struggle with credit cards
Los Angeles residents are well aware that the economy is still in an uncertain period, despite recent signs that things may be turning around. For every bit of good news regarding increased job creation and decreasing unemployment rates, there is a fiscal cliff or debt ceiling debate that sends the stock markets tumbling, placing financial strain on hard-working people all across the country.
As a result, many people are turning to their credit card to help out their financial situation in the short term. That is a perfectly fine approach, so long as you manage your money properly. But so many people utilize credit cards improperly, plunging them into crippling (and insurmountable) debt — and there are signs that recent generations will be significantly worse off when it comes to using credit cards than older generations.
Ohio State University released a new report that shows young Americans are more likely to die in debt to credit card companies due to the relatively recent popularity of credit cards. The study says people born between 1980 and 1984 will accrue more debt than older generations and pay it off at a slower rate than their older counterparts — let alone their spending habits are unlikely to change as they age.
Couple these revelations with inevitable inflation; a shaky job market; and a new trend by employers that tempers wages, bonuses and raises; and you have a recipe for disaster for younger people.
One way to fight back against these unfortunate factors is to declare bankruptcy. Can it make life difficult in the short term? Yes, it certainly can. But discharging your credit card debt can free up your finances in the long run, putting you on stable financial footing.
Source: Huffington Post, “Credit Card Debt: Study Predicts Millions Will Die In The Red,” Laura Rowley, Jan. 22, 2013