Those between the ages of 18 and 29 owe $1.05 trillion to creditors. Tennessee residents and others in this age group have student loan, credit card and auto loan balances in addition to other types of debt. However, they owe less overall than other age groups. Those who are between the ages of 30 to 39 have a collective debt balance of $2.9 trillion.
The main driver of this large debt load is student loans, and much has been made about the issues it could cause in the future. It is thought that as many as 40 percent of borrowers will have stopped trying to repay their loans by 2023. Student loan debt has grown by 100 percent over the past decade, and this had made it harder for younger people to buy a home or otherwise progress in life.
It is important to know that debt in itself isn’t always harmful. For instance, a loan could be used to buy a home that will eventually be sold for a profit. Taking out a loan to get a college degree could qualify a person for future jobs that have higher annual salaries. Those who are struggling to pay their debt may ease their burden by refinancing their current balances or looking for additional sources of income.
Individuals who are looking for a fresh financial start may benefit from filing for bankruptcy. Doing so may make it possible to have debt balances discharged without paying anything to creditors. If an individual is required to repay creditors, it will be over a period of three or five years. Any remaining debt balances could be discharged if they are eligible for such treatment. An attorney may help a debtor learn more about the benefits of filing for protection from creditors.