As Millenials in Florida and elsewhere strike out on their own, they are faced with numerous financial decisions. They are often bombarded with offers of credit. Generally, those who go to college are taking out thousands of dollars in student loans. Between student loans and credit card debt, the financial futures of Millenials are at risk. Sources indicate that the only other groups facing the same type of financial crisis are minorities.
Since the Great Recession, job prospects for newly graduated Florida residents can be grim. Therefore, the thousands of dollars they took out in student loans could remain unpaid for decades to come. Furthermore, many Millenials and minorities rely on credit cards for necessities, such as food, gas and utilities.
Statistics show that one out of every five young families struggles to pay the bills and/or has been unable to pay debts at all in the recent past. The way that credit card companies and student loan lenders work today, college age adults can easily get into debt in a hurry. Credit cards are readily available, and student loans are easy to obtain. Spending money using credit cards is the easy part — being able to pay them back is not.
The more difficult it is to repay student loan and credit card debt, the more likely it is that Millenials and minorities will need to find a way to manage their debt. Like many other Florida residents, filing for bankruptcy could help provide some relief and a way to correct the financial missteps made in the past. Even though not every debt can be discharged, it might be possible to clear away enough bills to be able to live more comfortably and focus on the debts that remain.
Source: USA Today, “Why Millennials, minorities face greater debt risk“, Susan Tompor, July 3, 2016