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.