Many people owe an average of $2000 in medical bills and struggle to pay them. Those same people also owe about $4000 in credit card bills. Additionally they likely have student loans and student loan interest, a car loan, mortgage or rent. This isn’t taking into account any monthly expenses.
President Biden’s recent federal student loan forgiveness will help many people. You can check out information on that here.
According to Experian, Millennials’ total credit card debt was an average of $4675 per person as of 2021. Generation X owed an average of $7070 per person and Boomers owed $5804 per person. Millennials’ credit card debt increased from 2020 while Gen X and Boomers’ average debt decreased.
Experian did find that Millennials also had an average of $13,418 in personal loans, $40,247 in student loans, $20,855 in auto loans, and $261,225 in mortgage loans.
Gen X’s average of debt according to Experian for 2021 was $18,922 in personal loans, $46,317 in student loans, $23,855 in auto loans, and $259,437 in mortgage loans.
Finally the average debt for Boomers in 2021 was $20,370 in personal loans, $42,352 in student loans, $19,972 in auto loans, and $182,247 in mortgage loans.
This is not saying Generation Z or the Silent Generation does not also have debt. As a Millennial, these three generations are the current ones arguing that one has it worse. It seems not. Everyone owes money. Including student loans.
Census.gov reported that in 2018 the Survey of Income and Program Participation added a question regarding medical debt from the previous year. It asked whether the respondents have any medical bills they were not able to pay in full. The survey found 19% of households in the US could not pay their full medical bills. If you are one of those people you are not alone.
This makes sense since medical bills are the number one reason people file bankruptcy.
Filing for bankruptcy is not the end of the world. Filing for bankruptcy can actually help you. When you’re struggling to pay your medical bills and credit card bills and car loan and monthly expenses filing for bankruptcy will give you a lot less to worry about.
When you are preparing to file for bankruptcy we will have you stop paying on your credit cards and medical bills and any collection accounts. Then you just need to worry about your ongoing monthly expenses. If you have student loans you continue paying those. If you have a car payment and you are going to keep your car you continue paying that.
Contact our office to schedule a free consultation so we can help you!