For years, the so-called millennial generation eschewed credit cards in favor of paying down mountains of student debt. But more recently, young adults in Kentucky and elsewhere have fallen prey to the siren song of credit cards to help make ends meet. As a result, they now inhabit the demographic most likely to require debt forgiveness plans like Chapter 7 bankruptcy in order to dig their way out of unmanageable debt.
Credit card debt is, of course, one of the most insidious forms of debt. It contributes little to equity and with high interest rates, it is notoriously difficult to pay down. With an average national interest rate of some 17%, many millennials are finding themselves increasingly stuck paying very little toward their principal, as monthly minimums usually only cover the card's interest fees.
This is part of the reason why delinquency in credit card payments is on the rise for millennials. In an economy that struggled for years following the 2008 recession, many younger people relied on credit cards to make ends meet. Combined with overwhelming student debt, this has left many millennials in a financially disadvantageous position. Thankfully, there are options available for support.
For the most challenging cases of debt, a Chapter 7 bankruptcy filing may be the best bet for a Kentucky millennial trying to clear the slate. By combining asset liquidation with debt forgiveness, unsecured debt like credit card debt can be paid down and/or wiped clean by the court, depending on the individual situation. This allows for a fresh start and a chance to get back on a positive financial track.