You might assume that younger people would use credit cards more often than older ones do. The convenience of buying now and paying later is still relatively new to them. They also haven't had years of paying interest on unpaid balances.
Economic experts are warning that another recession appears to be headed our way. In a recent survey by the National Association for Business Economics, 38% of economists who were polled predicted that it would occur next year. A little over a third said they expect it the following year, in 2021.
The number of personal as well as business bankruptcies in the U.S. has been increasing recently. There were 5% more filings in July of this year than in June. There were about 1,000 more consumer bankruptcies during the first seven months of this year than the same period in 2018, according to the American Bankruptcy Institute.
On July 25, the U.S. Consumer Financial Protection Bureau (CFPB) and the New York Attorney General (AG) announced that they had fined three New York-based debt collection companies and their owners over $60 million for illegally inflating consumer debts and barred them from further debt collection activity.
Maybe you've been trying to ignore calls, letters, emails and texts from collection agencies. Then you get hit with a lawsuit or debt claim by one of them. You may be tempted to ignore that, too.
Younger and older credit card holders are increasingly falling behind on their payments, according to the Federal Reserve Bank of New York. While credit card delinquencies are lower overall than they have been in the past, they've been rising during the past two years -- particularly for people under 30 and over 60.
A new report recently published by MarketWatch shows that the number of bankruptcy filings has significantly declined in the past 10 years. In fact, they've reached the lowest rate that they've been since the Great Recession back in 2008. U.S. Court data reveals why most people are pursuing this type of debt relief.
The financial institution LendEDU published a report earlier this month that sheds additional light on what may be motivating many individuals to file for Chapter 7 bankruptcy nowadays. They found that student loans may be one such factor.
Those who study consumer debt had been expressing optimism in recent years over young adults' seeming aversion to taking on credit card debt and consumer loan products. Millennials and those in the group following them (Generation Z) were doing better than their parents' generation at staying out of debt.
When people are deep in debt, trying to juggle payments to a multitude of credit card companies and lenders each month in addition to paying their basic living expenses, the idea of a "consolidation loan" can be very attractive. Why not take out yet one more loan offered at a low-interest rate and use it to pay off all of your other bills?