In the past, a person moved out once they turned 18. They got their own place and worked to pay rent. Nowadays, this is not a very feasible plan. Even with minimum wage at $15 an hour in Maryland, people are still struggling to survive. Even those with a college education are finding it hard to find good-paying jobs.
Those who are out on their own are finding it hard to pay the bills. Many are moving back in with their parents. Those without any family support are often on their own and may end up filing for bankruptcy.
Bankruptcies are on the rise among the younger generations, particularly millennials and Generation X. Millennials are those born between 1981 and 1996, while Generation X includes those born between 1965 and 1980. So adults between the ages of 28 and 59 are filing for bankruptcy at high rates.
What this means is that the debt crisis in the United States is escalating. This is despite economic data showing a 29% surge in consumer confidence since November. LegalShield’s December Consumer Stress Legal Index (CSLI), on the other hand, documents a rise in financial duress that has reached its highest point in the past three-year peaks. Consumers are seeking legal help for bankruptcy and other legal assistance at high rates. This data was taken from more than 35 million legal service requests and is exposing extreme fiscal challenges among young adults as well as a huge dip in consumer confidence.
This trend is reflected in broader economic data. Household debt in the United States rose 1.3% in the third quarter of 2023, to a record $17.29 trillion. This uptick was seen in auto loan, credit card, mortgage, and student loan balances. Those who are dealing with mounting debt are reaching out to LegalShield for advice regarding bankruptcy, repossession, and payday loans. So the financial stress among those in their 30s, 40, and 50s is definitely on the rise.
There has been a 24.7% increase in Gen X and a 40.1% surge among millennials reaching out for bankruptcy assistance year over year. And this isn’t just based on a survey. These statistics are based on people calling lawyers for advice. Because communicating with a lawyer can get pricey, people generally do not call lawyers unless they have a legitimate concern.
LegalShield’s December CSLI report surged to 66.7, which is the highest rating since November 2020. This is showing that people are really not feeling comfortable with finances. They are feeling immense economic stress despite otherwise optimistic economic reports.
Feeling the Squeeze
Despite optimism about the economy, many younger people are feeling the squeeze of finances. Job wages are not keeping up with inflation, making it hard for many people to make ends meet.
It can be hard to stay afloat nowadays. Many people are just one paycheck away from bankruptcy. If this describes you, contact a good bankruptcy lawyer. Filing for bankruptcy is a lot easier with a professional that can assess your individual situation and put you on the right path.
