Unlike in decades past, young adults now typically carry significant amounts of debt. Millennials in particular seem to be struggling under these massive debt loads. Although California millennials may actually fare slightly better than elsewhere in the nation, some may still benefit from debt relief through Chapter 7 bankruptcy.
The average debt for a millennial living in one of the U.S.'s 50 largest cities comes out to an estimated $23,064. Although this accounts for all different kinds of debt, student loans, vehicle loans and credit card balances accounted for most of the accumulated debt. Student loans make up the largest chunk, though, accounting for 40 percent of millennial loan and credit balances. Nationwide, 44 million people owe $1.5 trillion for their student loans.
Out of the largest 50 cities, the three with the lowest average balances are all in California. California also has the city with the lowest proportion of student loan debt. While this may be good news for residents, the lowest median debt balance was listed at $18,376, which is still a significant amount of debt to have as a young adult.
Young adults are not without options. Many choose to explore loan refinancing options or to negotiate and work directly with their creditors, which can result in reduced payments. While sometimes helpful, these tactics are not always effective at reducing debt and setting consumers back on a financially responsible path. When debt reaches a point that cannot be overcome, people in California may want to consider the benefits of debt relief through Chapter 7 bankruptcy.