A survey of millennials reveals new insight into their spending habits. Overwhelming debt seems to be a pervasive issue in the lives of those aged 22 to 33. This debt greatly influences how they conduct their life.
The survey, which was conducted by Wells Fargo, questioned more than 1600 millennials and 1500 baby boomers. Four out of ten millennials state that they are overwhelmed by their debt. This compares to two out of ten baby boomers that are age 49 to 59. Almost half of the millennials surveyed said that at least half of their monthly paycheck is dedicated to paying off their debts. The top three causes of debt are credit card bills, mortgage debt and student loan debt. Auto and medical debt constituted the remainder of the money owed.
One unique thing about millennials is their dedication to saving money. More than half of survey participants report that they save between 1 to 5 percent of their income. The recession has taught young adults that having strong savings is the only way to weather tough times. Interestingly, the large amount of debt has not dampened millennials view of their financial future. Nearly 70% believe that their standard of living will eventually be better than that of their parents.
Millennials are not the only ones carrying high credit card debt. For some, hard work is not enough to escape the clutches of debt collectors who constantly make harassing phone calls to debtors. Bankruptcy may be a valid option for rebuilding finances and getting back on the right track. A bankruptcy attorney can help potential filers determine the best legal course of action.
Source: CNN, “Millennials overwhelmed by debt,” Blake Ellis, June 11, 2014