When you’re struggling with debt, it can be easy to feel alone. One reason for this is because many people who find themselves overwhelmed with debt feel embarrassed. They therefore choose not to discuss the matter with family and friends, let alone seek debt relief options. However, this isolation can only contribute to one’s stress. Those facing this type of situation should know that they are not alone.
In fact, the vast majority of Americans are in some sort of debt. Of course, the portion of individuals carrying debt and the type of debt they carry, varies from generation to generation. For example, almost 81 percent of baby boomers are carrying debt compared to about 80 percent of those in generation X and 81.5 percent of millennials. There are some significant differences, though. Millennials tend to carry far less credit card debt than baby boomers, averaging about $4,000 compared to $7,100 for baby boomers and more than $8,000 for those in generation X.
There are ways that an individual can try to deal with these debts before they become overwhelming. One step is to try to consolidate debts so that it is easier to remember when payments are due. This, along with refinancing debt, can also help alleviate some high interest rate payments. Those with student loan debt should consider income-based repayment options, and some credit card companies may be willing to settle one’s debt.
When these options are either unrealistic or unsuccessful, then it may be time to consider personal bankruptcy. There is nothing to be ashamed about when it comes to pursuing bankruptcy. Instead, individuals should see it as an opportunity to obtain a fresh financial start. To learn more about the different types of bankruptcy, including Chapter 7 and Chapter 13, individuals can discuss the matter with a skilled legal team.