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Young Debtors Face Steep Challenges
Many young people have found themselves in dire financial straits, often due to using credit cards to pay bills without an economic boost to lift them away from destitution.
July 08, 2010 /Children and Youth PR News/ -- Young people have always been imbued with the notion that, regardless of their behavior, they will land on their feet. However, for those of Generation Y -- born in the '80s and '90s -- this might not be the case. Many in this generation have found themselves in dire financial straits without an economic boost to lift them away from destitution.
This isn't to say that all Generation Y members are in trouble; some have managed their money carefully and found solid jobs with excellent benefits. However, according to USA Today, many aren't so lucky.
A Generation Built on Credit
One of the main problems facing members of Generation Y is their dependency on credit to pay the bills. Many entered college when the economy was strong and credit card companies were targeting recent high school graduates who hadn't yet learned about managing money.
The tendency to buy now and pay later, combined with the need for student loans, has put thousands of Generation Y adults in serious debt. Only 58 percent pay their bills on time every month, and a staggering 20 percent carry balances of more than $10,000 on credit cards. This doesn't bode well for their financial futures.
Generation Yers are also more likely to use inadvisable monetary sources to pay off debt and to subsidize unsustainable standards of living. They are cashing in 401(k) accounts when they switch jobs and borrowing more money, which continues the cycle and leaves little in reserve for retirement.
Job Outlook and Economic Woes
Members of Generation Y are more likely to overspend and make poor financial choices when they do not realize the long-term consequences of their actions. They assume that the economy will reverse its downward spiral, but they don't take into account the exponential consequences of acquiring massive debt in the meantime.
College graduates who thought they would enter the job market in high-paying positions are taking whatever work they can find to eke out a living. They are waiting tables, working in retail or doing manual labor instead of beginning the careers for which they originally went to school.
Job prospects are dwindling every day, and even those lucky few who have managed to find work in their chosen industries are often earning much less than they expected, making it difficult to compensate for financial mistakes made in college.
Members of Generation Y are facing a number of rude awakenings and may soon discover that they need to declare bankruptcy in order to survive.
Article provided by Attorney Debt Solutions
Visit us at www.bankruptcylg.com
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