Study Shows Slower Debt Payoff by Consumers

A study published in the journal called Economic Inquiry has revealed important information about borrowing and payoff of credit card debt by American consumers. The study was conducted by Ohio State University involving more than 32,000 borrowers between the ages of 18 and 85 with information spanning the years 1997 to 2009. According to the data gathered, younger borrowers born from 1980 to 1984 have significantly higher credit card debt than those in their parents' or grandparents' generations. On average, they owe $5,000 more than their parents' age group and $8,000 more than their grandparents' age group.

The younger generation also pays off their credit card debt at a much slower rate than previous generations. Their rate of payoff is 24 percent less than their parents' generation and 77 percent less than their grandparents' generation. This may be because of the high number of student loans the younger people owe on which makes paying off credit cards that much more difficult. The increase in debt is also probably a result of more easily obtained credit and less social stigma attached to debt and bankruptcy. Experts recommend those with credit card debt make more than minimum payments to avoid remaining in debt for the rest of their lives.

Chicago Bankruptcy Lawyer

Debt relief has become a major issue for many Americans since the recession began in 2008. Those struggling to make ends meet may be doing so as a result of job losses, reduced hours or wages, investment losses, costly illnesses, injuries, or divorces, or faulty financial management. Finding appropriate and suitable ways to resolve a hopeless debt overwhelm often requires sound legal advice and information. Attorney Joseph P. Doyle offers competent and dedicated legal service in bankruptcy, creditor harassment, fighting foreclosure, and related matters for clients in and around the metropolitan Chicago area.

Knowledge about debt relief options is vital to understanding what you should do to resolve your financial scene. Contact Mr. Doyle's firm to arrange for a consultation about your financial situation; get the guidance you need to make informed decisions and to move into better financial control.