Which Generation Is Most in Debt and Most Likely to File Wilmington Bankruptcy?

Baby boomers and debt can mean financial trouble

Image by Marvin Roaw via Pixabay

Debt is one of the most discussed topics in America today – online, at work, and in Wilmington households. It’s not difficult to see why. Even with the economy booming (and perhaps because of the resurgence), we now owe more than ever. A recent study by Value Penguin shows total outstanding consumer debt in the US now exceeds 3.9 trillion dollars.

Of that, more than $1 billion is revolving debt like credit cards. Most everyone is in debt in one form or another, whether it’s your car loan, mortgage, or the plastic in your wallet. What’s surprising is how we accrue debt by generation, what age group owes the most, and what segment of the population, by age, is likelier to file bankruptcy.

Generation X owes the most

In a recent study by Go Banking Rates, they found Generation Xers owe the most amount of debt. That generation covers those from age 35-40. The research shows that 46% of this group carry credit balances with an average of $4,000.

Compared to other generations, more Gen-Xers have credit balances and also more debt in terms of dollar amounts. Older Generation Xers (age 45-54) owe a little less, averaging about $2,000 in debt while Baby Boomers keep balances of roughly $3,000.

Millennials are less in debt than their elders

Older Millennials (age 25-34) usually carry an average credit balance of $2,000 while younger Millennials (age 18-24) keep, on average, less than $600 in debt. There are many reasons for Gen-Xers to carry more debt than other generations.

At that point in their lives, those in their 40s and 50s have many debt obligations including owning a home, supporting families, and all the expenses that come with this stage of life. Often, Wilmington consumers in this age range have expenses associated with their children and their aging parents as well, which can drive up debt.

Baby boomers more likely to file bankruptcy

Baby boomers, on the other hand, are tops when it comes to the odds of filing bankruptcy. According to the American Bankruptcy Institute, baby boomers aged 45 to 64 make up 42% of all bankruptcy filings. This figure is predicted to rise as more people head into their golden years with increasing debt balances.

The rising cost of medical care is a significant driver in Wilmington bankruptcies among those aged 50 and up despite more people now being insured. Higher deductibles and out of pocket costs can wreck financial stability. Increasing premiums and rising overall health costs mean this is a growing, not lessening, problem.

Apart from medical debts, prolonged unemployment, divorce, accidents, chronic illness, and anything that decreases income and increases expenses can push anyone’s financial circumstances to the brink

Bankruptcy is an opportunity for a fresh start

No matter your age, income, or how you got into debt, bankruptcy is a chance to click “reset” on your finances and get out of debt. With Wilmington bankruptcy, you can choose Chapter 7 or Chapter 13 depending on your income, expenses, and overall debt. With Chapter 7, you can unload unsecured debt like credit card balances, medical bills, and some older income tax debt within just a few months

If you’re behind on your mortgage or auto loan, Chapter 13 allows you time to catch up on delinquent balances, avoid foreclosure and repossession and regain control of your finances. In either case, North Carolina bankruptcy exemptions fully protect your retirement funds in your 401(k) and IRA while offering much-needed debt relief.

Don’t stay mired in unaffordable debt. Get the fresh financial start you deserve and peace of mind from nagging debt collections and the stress of living with a perpetual cash crunch. To find out more about the benefits of bankruptcy, read reviews from our clients, then give us a call.

Contact the Law Offices of John T. Orcutt and schedule a free Wilmington bankruptcy consultation at one of our locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro or Wilmington. Call us at +1-833-627-0115 to get started on your brighter financial future.

Resources:

Value Penguin Study

Go Banking Rates Research

Bankruptcy and retirement