Debt used to seem like a problem that only people of a certain age or those who were very poor with money ever dealt with. Now, even young adults in Pennsylvania are finding that getting through life without some kind of debt is not only difficult, but it often seems next to impossible. With a large number of U.S. college students carrying around some type of credit card debt, the problem could get worse for these young adults before it gets better.
EVERGI and AIG conducted a study that involved over 30,000 college students attending more than 440 different institutions. According to that survey, more than 33% of students have a balance of at least $1,000 on their credit cards. The researchers conducting the study used this information to determine that college students have been routinely taking on more and more credit card debt since 2012.
Despite using credit cards more frequently and holding on to more debt, college students do not feel fully equipped to handle these decisions they are making. In that same survey, 53% of participants said that they felt as though they were not prepared to fully manage their finances. Credit scores are also taking a hit during college years, and 15% of people in the survey confirmed that their scores had dropped because of late or missed credit card payments.
Starting off adulthood with a mountain of debt is not an ideal situation, but it is not impossible either. Pursuing personal bankruptcy can help people living in Pennsylvania address their debts, including things like credit card debt and even auto loans. However, many young adults are not fully aware of how the bankruptcy process works and how it can help their financial situation. For these individuals, speaking with an experienced attorney can be a good first step toward a better financial future.