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Young Massachusetts residents may die with credit card debt

The younger generation of Massachusetts residents, now fully entering in to the adult world, may well take the consumer debt that they charge to their credit cards with them to their graves. The "Millenial" generation, which consists of those born between 1980 and 1984, typically carries about $5,689 more in credit card debt than their parents carry. They carry $8,156 more debt than their grandparents carry.

In addition to carrying higher balances on credit cards, the Millenials also pay off the principal and interest on those balances more slowly than do those of older generations. They pay off their balances at a rate 24 percent slower than those born between 1950 and 1954 and 77 percent slower than those born between 1920 and 1924.

Of course, making only minimum payments means that a young adult will stay in debt longer because interest will keep accruing on their higher balances. Making just a little more than a minimum payment can save hundreds of dollars interest and can shave months off of the time it takes to pay a credit card balance.

As it stands, however, it seems that young adults are also willing to keep charging more debt on their credit cards. Experts predict that they are likely to do so even in to their retirement years.

This was not the only recent disconcerting news about credit card debt. Other reports suggest that over half of all American households carry a balance on their credit cards that is higher than the amount they have set aside in an emergency fund.

Particularly for those young adults in Massachusetts who struggle to get ahead in life because of credit card debt, a bankruptcy may be a viable option. Filing for bankruptcy earlier in one's life may allow that person to take full advantage of the fresh financial start that a bankruptcy affords.

Source: Fox Business, "Millenials may take credit card debt to the grave," Maryalene LaPonsie, Feb. 28, 2013

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