Many Tennessee consumers struggle with multiple types of debt, including credit card bills, student loans, medical bills and unpaid taxes. According to one report that compared how different generations were managing their debt, members of Generation X are struggling more than baby boomers and millennials.
Individuals from ages 21 to 34 were grouped into the millennial category. In 2016, their average credit score rose by about four points, which was higher than gains seen for any other generation. Many millennials graduated college during a time of recession and were forced to take low-paying jobs. Statistics show they are bouncing back from the financial hardships well.
Generation X included individuals ranging from ages 35 to 49. This group carried the highest average amount of mortgage debt of $231,774. It is likely that many of the individuals in this group purchased their homes during the housing bubble and experienced a sharp decrease in home values until recent years. This group also has the largest percentage of late payments at 0.54 percent.
The baby boomer group included individuals ranging from ages 50 to 70. On average, the credit score for this group increased to 703 from 700. Their rate of late payments on average was only 0.3 percent.
For individuals who are facing bills they are unable to pay, filing for bankruptcy can be a way to stop creditor harassment and gain a financial fresh start. Many consumers choose to file under Chapter 7 which allows the debtor to keep any property that is exempt and discharges most or all of their unsecured debt. Another option is a Chapter 13 bankruptcy which requires the debtor to make payments according to a structured plan for up to five years. An attorney can explain the process in more detail.