Stereotypically, young people in Tennessee and across the country are often thought of as being irresponsible with money and more likely to find themselves in a difficult financial situation. However, a recent study has found that though young people may accumulate credit card debt, they are not more likely to stop making their payments. There could be several reasons for this, but it leads to statistics showing that people closer to middle age are more likely to have credit issues.
Some individuals may believe that young people have less to worry about when it comes to their finances because they have parents or other parties who may be able to help them. If a student acquires a credit card and is unable to make the payments, parents may lend their own money to keep their child from having a negative mark on their credit history. While this tactic is helpful to the young person, parents may find themselves with a challenging monetary situation.
Older adults often have more financial obligations, such as mortgage or car loan payments. If they accumulate other debt, it may still be difficult for them to pay off that debt because of their other balances, though they may have an adequate income. Other circumstances may arise that could cause older adults to have to prioritize their income, and credit card debt may end up lower on the list than other obligations.
Dealing with credit card debt and other financial burdens can be a considerable issue for people of any age. While some young adults may have the assistance of parents or other relatives to rely on, many people do not have that type of support. Younger and older adults could find themselves in financial situations that they may not know how to handle, and information on Tennessee laws regarding bankruptcy and other debt management solutions could be beneficial.
Source: bloomberg.com, Young Credit Card Holders Are Less Likely to Default, Megan McArdle, Oct. 8, 2013