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Young adults facing financial challenges

According to a recent report, a number of people in the so-called "Millennial" generation, born between 1979 and 1996, are doing a good job of saving money for retirement. According to this report, over two-thirds of young adult Millennials are saving something for retirement, usually at an age well earlier than that at which their parents started to put money away for their golden years.

On the other hand, many young people in Michigan find themselves overwhelmed with debt. Nationwide, almost 40 percent of Millennials admit to feeling awash in a sea of debt, and over half of them admit that none of their paychecks are going towards savings, even though over half of this same group self-identified as "savers" who were reluctant to spend big.

One example of this trend was a young woman from Michigan who, interestingly enough, writes and speaks about financial planning. Nevertheless, this woman admits that she has not been able to start her retirement savings, saying instead that she is focusing on gathering enough money to buy a new home with her husband.

Much of the problem involves the often huge amounts of student loan debts that young adults carry these days. With some of them having to pay over $1,000 a month in student loan principal and interest, the debt load leaves many young adults unable to save up for big ticket items like a home or a secure retirement.

Although a bankruptcy proceeding cannot always help young adults eliminate debt completely and usually will not eliminate a student loan payment, it can eliminate other debt and free more resources to pay off the student loans. Bankruptcy may be a last resort but it can be a valuable tool for young adults who are in over their heads in debt and need a fresh financial start.

Source: USA Today, "Millennials: Super savers or dogged by debt," Susan Tompor, July 6, 2014.

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