Without a doubt, many people throughout the country, including here in Texas, owe tens of thousands of dollars in student loans. However, a recent report indicates this type of debt is not necessarily the highest that numerous millennials have. Instead, student loans take a back seat to credit card debt for about 25% of those who participated in the survey.
When Texas residents consider how to reduce their monthly budget, many people will tell them to cut out their morning coffee to save money. While that may be a good idea, it probably is not consumers' main source of credit card debt. Other luxury items seem to surpass it, and not giving up those expenses seems to create larger balances.
It might surprise some Texas residents to know that not everyone pays attention to their financial obligations. One recent study conducted by U.S. News and World Report involving 1,000 adults found that approximately 21% of the participants did not even know if they have credit card debt. Under these circumstances, consumers could easily end up in a precarious position when it comes to their finances.
The economy has improved, and when that happens, people tend to loosen their purse strings and spend more money. Unfortunately, this often means incurring credit card debt. It may not surprise many Brownsville residents to know that this type of debt continues to rise across the country, which could end up causing serious financial issues for some.
Growing up during the great recession initially resulted in millennials, those ranging in age from 18 to 29, doing their finances differently from their parents. They saved their money and avoided credit card debt, at least until recently. The number of delinquent accounts used by the younger generation here in Texas and elsewhere has risen, and many blame it on offers from credit card companies.
Job losses, medical emergencies, divorce and more can easily adversely affect the financial lives of Texas residents. Many turn to credit cards in order to keep up with necessities, but soon, those bills become overwhelming as well. By the time credit card debt reaches a critical point, consumers may begin looking for ways to rectify the situation, but they need to exercise caution when doing so.
Many Texas residents experience financial difficulties for a variety of reasons. Credit card debt is often part of those troubles. Once they are unable to make payments on these debts, they may discover the account has gone to collections. Handling this type of situation requires taking several steps. If the situation cannot be satisfactorily resolved, consumers may need to take additional measures to achieve relief from these debts.
It seems as though it does not take much to end up with overwhelming financial issues. Credit card debt in particular can sneak up on many Texas residents just as it does for others across the country. For some, it is only when the incessant phone calls from creditors begin that the true scope of the problem really hits home. The last thing that people need as they are struggling with their debt is harassing phone calls.
For many Texas residents, the holidays mean buying gifts, which often leads to overspending as people get carried away by the spirit of the season. In the first months of the new year, they may find themselves struggling to pay for the credit card debt incurred at the end of the previous year. When those debts cannot be easily repaid, they end up forced to deal with credit card debt collectors.
Part of the joy of the holidays for many here in Brownsville is giving. Going out and purchasing gifts for friends and family that they know the recipients will like and enjoy often provides a lot of joy for the giver. The problem is that joy may not last if those presents were purchased with plastic. The credit card debt many people incur during the holidays can haunt them for months or even years after the holiday season ends.