Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

Young people face significant debt

Debt continues to be a major concern for people of all generations in Tennessee and across the country. Young people ages 16 to 20, known as "Generation Z," already have a significant average debt of $4,343 according to a survey of 2,000 young adults conducted by financial company Charles Schwab. Young millennials, aged 21 through 25, have an average of $11,663 in debt. These sums include student loan debt as well as credit cards and other form of personal or consumer debt.

In addition to their growing debt burden, young people are unlikely to have significant savings. According to the survey, around half of the respondents had less than $250 in savings. The survey also revealed that many young people are confused about different types of debt and how they can affect a person's credit portfolio. Around 20 percent of respondents said that home mortgages were a bad kind of debt to have while 40 percent said the same about student loans. Both are traditionally known as less negative types of debt because they often have low interest rates and provide tax advantages. On the other hand, 27 percent said that credit cards and similar revolving accounts provided good debt, the opposite of traditional wisdom.

However, any kind of debt can be a big problem when it is insurmountable. Experts suggested keeping total debt load to less than 36 percent of a person's total gross income in order to maintain a level that is possible to repay successfully.

A lack of sufficient income can push young people further and further into debt. Of course, people of all ages can suffer from the collection calls and incessant stress that come with unrepayable debt. A bankruptcy attorney may work with people struggling with unpaid bills to seek a solution that can offer a new window into a financial future with debt relief.

No Comments

Leave a comment
Comment Information

We Look At Your Case From Every Angle To Find The Solution That Is Right For You

Bankruptcy help for everyone, from the most simple to the most complex cases.

Call Us Now To Schedule A Free Initial Consultation

Contact our Nashville office at 615-686-2279 or our Cookeville office at 931-400-2218. You can also reach us via email to set up a time to talk to us about your debts.

Get Legal Help Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
Nashville Law Office Map

Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
Cookeville Law Office Map

Back To Top