A study conducted by Demos, a research organization based out of New York, found that Americans over 50 are the demographic most likely to struggle with credit card debt. It’s blowing stereotypes out of the water: irresponsible teenagers and young twenty-somethings wasting their days spending money they don’t have and ending up buried in revolving debt they can’t pay back. The study indicated that older Americans in low and middle-income homes who carry a balance for 3+ months owe an average of $8,278 in debt. A similar survey in 2008 did indicate that the same was true of the younger demographic (Americans under 50), the current average balance for the under 50 crowd is closer to $6,000.
The older generation (often referred to as Baby Boomers) are apparently spending their money (or “credit” if we want to be completely accurate) on necessities like utilities and groceries. This was the case in over half of the older households studied. The other half of the older generation was generating balances due to medical bills. In ¼ of households over 50, consumers indicated that they were forced to go into debt as a result of a job loss combined with difficulty finding a replacement job.
Experts are pointing towards Social Security cuts and the trend towards debt as support for conclusions that the boomer generation is headed for serious trouble – financial trouble, that is.
Luckily, there are no age restrictions on filing for bankruptcy to recover from overwhelming debt. Regardless of whether you are young or old, bankruptcy could be the solution you are looking for. It relieves the pressure to pay various types of debt including both that are most common amongst baby boomers: medical bills and credit cards.
Bankruptcy law can be complicated and is full of exemptions. It’s always a good idea to discuss your options with an experienced South California bankruptcy attorney. Contact Westgate Law for answers on how filing for Chapter 7 or Chapter 13 could benefit you.