A recent article from CNN Money is giving us hope for the future of Augusta Chapter 13 bankruptcy filings. The author discusses how the number of young Americans living without credit cards has doubled since the recession.
Overwhelming credit card debt is one important reason individuals end up filing for bankruptcy, so it is refreshing to see that a new generation of consumers is choosing to spend only what they can afford. The article says that after watching older generations get hit during the recession with unemployment, foreclosure, repossession, and unpaid bills, a lot of younger folks are trading in their credit cards for debit cards. Out of consumers ages 18 to 29, about 16 percent did not have one single credit card by the end of 2012; this was up from 8 percent in 2007, according to credit score provider FICO.
It is also believed that the CARD Act of 2010 may also be playing a role in this shift away from credit cards, because it requires that anyone under age 21 must have a co-signer or earn enough money to make full payments. This makes it much harder for the younger population to qualify for credit cards.
Unfortunately, while young people are making better financial decisions, consumers age 40 and over have more overall debt today than they did in 2005. They also lowered their credit card debt, but accumulated more auto and mortgage debt. If you are one of these individuals who is overwhelmed by debt and you're thinking about filing for Chapter 13 bankruptcy, contact Seymour & Associates at (706) 872-7117 for a free consultation.