In a surprising turn of events, more and more young people are eschewing credit cards in order to avoid crushing debt. Credit card debt is at an all-time low for young people as many are choosing debit over credit for their choice of plastic. In Michigan and elsewhere, however, many young people still suffer the effects of so-called bad debt.
According to a recent study conducted by a credit score provider, roughly 16 percent of adults aged 18-29 did not have a credit card account at the end of last year. This has doubled since 2007, when only 8 percent of young people did not carry a credit card. This means credit card debt for this age group has declined by over 30 percent -- from an average of $3,073 to $2,087.
After the recession hit, it is presumed many young people saw the kind of debt troubles experienced by their elders. Some experts believe there was a desire to avoid the same kind of challenges by avoiding accruing debt altogether. As a result, many young people are in better financial straits than their parents. However, this is not true for all young people in America.
Credit card debt can be very difficult to navigate, and while some Michigan residents have the ability to get by without credit support, others do not. Thankfully there are options available for people young and old to deal with credit card debt. Financial restructuring and bankruptcy filings can help to limit and in some cases eliminate existing debt while helping to get back to a more stable financial life.
Source: Forbes, "This Week In Credit Card News: Young Adults Ditch Cards, Effects Of Bad Credit Report," Bill Hardekopf, June 24, 2013