This weekend, Forbes.com featured an alarming article on the crushing debt that many millennials are dealing with. Millennials are characterized as Americans between the ages of 18 and 34, and the demographic is becoming the largest living generation.
According to a survey by Accounting Today, 42 percent of millennials said that they have “overwhelming” debt, which was twice the rate of baby boomers who were surveyed. In fact, the Forbes article said that for many millennials, debt is their primary concern in life.
It’s student loans, in particular, that are crippling the generation’s finances. Currently, student loan debt is estimated $1.2 trillion in the United States, and it’s only getting larger.
Not only does the debt prevent millennial from buying homes, getting married and starting families, it could also result in a future economic meltdown if they are not able to recover, the Forbes article reported.
Therefore, action needs to be taken, and the article suggested that parents of millennials can help in three ways:
- Make sure millennials understand their credit score and credit report.
- Help millennials to reduce their debts through debt negotiation, loan consolidation or modification programs.
- Help millennials to create a budget that works for them.
These are great action items that parents of millennials can take to help their kids get their financial lives on track. It might also be helpful for millennials and their parents to meet with a bankruptcy lawyer who can provide advice on debt settlement, credit restoration and more.
Although student loan debt is often not dischargeable in bankruptcy, an experienced bankruptcy lawyer can still provide valuable assistance such as:
- Help with managing student loans and going over repayment options
- Putting a stop to garnishments resulting from student loan debt
- A plan for getting out — and staying out — of default
- Help dealing with debt collectors
- Representation after being sued by lenders or the Department of Justice
- Representation in lawsuits against lenders, servicers, guarantors, and debt collectors
