Young adults in Virginia and across the U.S. are in more debt than they’ve been in since 2007. In fact, Americans between the ages of 18 and 29 owe a whopping $1.05 trillion, according to a new report from the New York Fed Consumer Panel and Equifax.
However, before anyone starts picking on young people, it should be noted that older borrowers are in even more debt. For instance, the report found that Americans between 30 and 39 are buried under $2.9 trillion in debt and those between 40 and 49 are struggling with $3.4 trillion in debt. Meanwhile, Americans between 50 and 59 are shoveling their way out of $3.2 trillion in debt, those between 60 and 69 are juggling $2 trillion in debt and those who are 70 and up are towing around $1 trillion in debt.
Student loans are the most common source of debt, accounting for more than $1.5 trillion of all debt owed. The next most common source is mortgage debt. Other common types of debt include auto loans, credit card debt and other types of consumer loans. In order to reduce debt, experts recommend that borrowers refinance student loans and consolidate credit card debt, which can lower interest rates and make it easier to pay down balances. Improving credit scores and increasing income can also make it easier to get out of debt.
Individuals who are having trouble meeting their financial obligations could contact a bankruptcy attorney for help. After reviewing the case, the attorney could explain all legal options available and recommend an appropriate course of action. One possibility could be to file for Chapter 13 bankruptcy, which could stop creditor harassment and help erase debt.