Excessive amounts of debt wreak havoc on the financial well-being of many Connecticut consumers and others who reside elsewhere. Recent reports show that certain age groups have incurred larger amounts of debt than others. Yet, regardless of age and demographic group, the burden of carrying a lot of debt may prompt some to seek debt relief in a variety of ways.
A national financial services organization recently published survey findings that showed older millennials — those adults ages 24-34 — have an average of $42,000 of personal debt. This is the highest level of any demographic reported. Those between the ages of 35 and 49 — known as Generation X — had the next highest amount at an average of $39,000. The lowest amount of personal debt was among young millennials — those ages 18-24 — at $22,000.
Financial experts who weighed in on the findings were not overly concerned about the Gen X consumers. Many may still have significant debts; however, they are likely at or near the top in earning potential. Also, they should have built up their savings accounts as well as equity in their homes.
However, one personal finance commentator believes that there should be a point in time where all of one’s debts are paid off completely. He recommends that all mortgages, student loans or credit card debt be paid off by the age of 45. He views this as “half-time” in the game and strongly suggests using the latter half to focus on building assets for retirement.
Excessive debt, whether from credit cards, student or car loans, can be overwhelming. Many Connecticut residents are uncertain about how to get out from under the cloud of debt. A knowledgeable bankruptcy attorney can help individuals seek debt relief and develop a plan to get their finances back on track.