Young people in Oregon and across the country are facing an increasing debt burden. According to statistics from the New York Fed Consumer Credit Panel and Equifax, people between the ages of 18 and 29 owe $1.05 trillion in debt. While student loans comprise a substantial amount of this debt, other common burdens include credit card debt, auto loans, mortgages and other types of loans or consumer credit. This marks an increase in debt among this demographic, which last owed this much money in the last quarter of 2007. The trend at that time was later disrupted by the 2008 financial crisis.
Of course, young people are not alone. People between the ages of 30 and 39 owe $2.9 trillion in debt while people aged 40 to 49 owe $3.4 trillion in debt. People between 50 and 59 years of age owe $3.2 trillion, those 60 through 69 owe $2 trillion, and those 70 and up owe $1 trillion in debt. This means that the youngest and oldest Americans have approximately the same collective debt burden. Student loan debt, which has been widely recognized as a national crisis, amounts to $1.5 trillion of all personal debt, affecting 44 million people. Some expect that 40 percent of borrowers may default by 2023.
However, unlike credit card debt and other kinds of personal debt, it can be far more difficult to escape from a student loan burden. Advocates and legislators have called for a solution as people are generally prohibited from discharging their student loans in bankruptcy.
People who are unable to pay off their credit card debt at any age may be looking for a solution to find debt relief. A bankruptcy attorney may be able to provide information on Chapter 7 and Chapter 13 personal bankruptcy as well as explain the options available for people facing significant debt.