It is common for Indiana residents to hear about millennials dealing with student loan debt. However, what is not discussed as often is millennials and credit card debt. A study that was performed by Northwestern Mutual revealed that credit card debt is the biggest source of debt for a quarter of millennials. The majority of this debt comes from dining out and traveling.
Millennials are not always aware of how expensive credit card debt can actually be. It is typically the most expensive type of debt that exists, often being higher than student loans, car loans and mortgages. Many millennials do not even know what interest rate they are being charged, which often leaves them unaware of how much their debt is truly costing them.
It is common for millennials to have anywhere from one to four credit cards. This is because they are often offered incentives to get them. They may receive applications for credit cards in the mail. However, they do not realize that interest compounded at 20 to 25% is really adding up.
When a person is dealing with credit card debt, this delays their ability to save. It is important for millennials to pay off their debt as quickly as possible. One option may be consolidating the debt by visiting a bank and getting a debt consolidation note or doing this by means of a low-interest credit card. Instead of paying the minimum on their credit cards, debtors should make larger payments on them to clean up their balance fast.
Dealing with large amounts of debt can make a person feel hopeless. However, there are options for debt relief through different forms of bankruptcy. An attorney may be able to answer a person's questions about filing for bankruptcy and other legal means that are available to eliminate debt.