Millennials are known for their tech savvy, and while older generations might still think of them of kids, even the youngest members of this group are approaching age 30. As they start families and look to advance their careers, millennials are also increasingly facing various sources of financial stress. In response, more millennials than ever before are filing for bankruptcy.
In the Consumer Stress Legal Index created by LegalShield, millennials (individuals born between 1981 and 1996) have been much more likely to seek legal consultations on debt-related matters than they were even a year earlier. Requests for advice on bankruptcy rose more than 40 percent, and the increases are even sharper for inquiries related to repossession and payday loans.
There are several reasons why millennials might be facing more financial difficulties than older Americans, such as:
- Student loan debt — Younger adults are navigating a job market that demands higher educational qualifications and offers less job security compared to previous generations. Student loan debt is a significant burden, with many millennials carrying five- and six-figure balances. This debt can overshadow other financial obligations and force borrowers to live from paycheck to paycheck.
- Inflation and stagnant compensation — Though average wage increases might finally be exceeding inflation rates, many people’s income did not keep pace with the cost of living for some time. Additionally, people starting out in their career can be more susceptible to layoffs when a company decides to outsource certain jobs or use new technology to cut back on their workforce.
- High interest rates — Given that millennials are between the ages of 28 and 43, many of them have purchased a residence in the past few years or are preparing to become first-time homeowners. Unfortunately, higher interest rates mean that individuals are devoting a greater share of their income to make mortgage or car payments. A subsequent job loss, divorce or medical problem might make it impossible to meet basic needs.
- Phased-out pandemic relief — While the COVID-19 pandemic initially saw a drop in bankruptcy filings due to government relief measures, as these programs phase out, many are finding themselves unable to recover fully.
No matter your age, bankruptcy can offer a fresh start. At Jeff Field & Associates, we can review your situation, advise you of your options and explain what life after bankruptcy will be like. We have offices in Athens, Douglasville, Gainesville, Lawrenceville, Marietta and Scottdale to serve clients throughout Georgia. Please call 404-381-1278 or contact us online for a consultation.