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Which generations could benefit from Chapter 7 bankruptcy?

On Behalf of | Apr 8, 2020 | Drug Offenses

Talking about money is still pretty taboo, which means that there are a lot of Illinois consumers worried that they are the only ones in over their heads. What most people would probably be surprised to discover is that their situations are not all that unique. According to a recent study, Americans are carrying a huge amount of debt, and some generations might be edging closer to Chapter 7 bankruptcy than others.

The 2019 Consumer Debt Study from Experian shows that the average consumer has $90,460 of personal debt. That debt includes everything from retail credit cards to mortgages. In total, Americans owe $14.1 trillion in consumer debt.

Adults between the ages of 40 and 55 — also known as Generation X — carry the most debt. The average Gen Xer owes $135,841, higher than the $123,521 average in 2015. He or she is also carrying an average of $8,215 in credit card debt and an auto loan of $21,570.

Baby boomers come in second when it comes to debt. The average adult between the ages of 56 and 74 has $96,984 in debt, which is less than 2015’s average of $104,824. Baby boomers tend to take out more personal loans than other generations and carry the highest balances, averaging out to $19,253.

Different generations face unique challenges that can lead to shared financial burdens. However, it does not matter whether someone in Illinois is 18 or well into retirement — if he or she cannot keep up with monthly payments, then it is time to find a solution. Those who are interested in following a proved path to financial security may want to consider whether Chapter 7 bankruptcy could be the right choice for them.