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Chapter 13 bankruptcy: Debt common across generational lines

On Behalf of | Oct 31, 2018 | Chapter 13 Bankruptcy, Firm News

According to a recent survey, debt is almost as American as apple pie. Nearly three quarters of Americans have at least one kind of debt, which can create an enormous burden on the individual. While some people might think that certain individuals or generations might be more likely to accrue huge amounts of debt, this might not be the case. Virtually anyone in Florida can find themselves in need of debt relief through Chapter 13 bankruptcy.

The 2017 study included more than 1,000 adults from across the United States, and 66 percent of respondents reported that they carried consumer debt. The per person average for this form of debt came out to $34,055. This covered debts such as credit cards, car loans and more.

While baby boomers, Generation X and millennials were all represented in the study, one generation did stand out in terms of credit card debt. Within Gen X, 59 percent reported having a balance on their credit cards. Only 46 percent of baby boomers said they had credit card debt. Survey participants were also asked about student loans, and millennials reported having the least amount at an average of $35,992.

Generational differences were not the only thing that stood out. Household income across all generations correlated closely with a person’s consumer debt. Individuals with annual household incomes between $75,000 and $99,000 reported the highest levels of consumer debt regardless of age.

Debt is a ubiquitous aspect of society, and once a person goes into debt it can feel impossible to get back out. Soon additional debts may pile on, leaving individuals in Florida struggling to even meet their basic needs. When consumer debts outweigh a person’s income, Chapter 13 bankruptcy can set them back on a path toward financial security and freedom.

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