Millennials in Florida and other states have a reputation for shying away from credit card debt and credit cards in general, likely because the late 2000s recession is still fresh in their minds. But this may not be the case anymore. Credit card delinquencies of 90 days or more among borrowers 18 to 29 are on the rise.
Americans within this age group have reached a nearly ten-year high with their share of overall 90-day-plus delinquent credit card balances. People within this age group are less likely to be lured by cash back or zero-percent interest. However, they are often enticed by elaborate credit card bonuses and attractive perks. Rising interest rates and a strong economy are other factors cited. Accumulating credit card debt can present financial challenges for younger borrowers, even more so than student loan debt - another form of debt also on the rise among millennials.
At one time, younger individuals were steadily using credit cards much less. Today, however, more than half of all adults in their 20s have credit cards. What's more, student loan interest rates tend to be lower, and federal loan rates for undergraduates are also on the decline. Credit card debt, however, can quickly accumulate and become difficult to pay off. Millennials with credit cards are advised to be among the 40 percent of cardholders who regularly pay their balances in full.
It's unusual for younger borrowers to be in a predicament where they are contemplating personal bankruptcy. But if such a point is reached, a bankruptcy attorney can discuss legal debt restructuring and relief options. Prior to recommending this step, a lawyer may recommend that a young debt-holder determine their total accumulated debt and identify obligations that are too much for the client to handle.