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Looking at debt levels by generation

Massachusetts residents may be pleased to hear that the average credit score in America has increased in the past year to 675. That is the highest it has been since 2007. While many assume that millennials struggle with credit, they do not have the lowest average credit score when broken down by generation. That would be Generation Z with an average score of 634.

Millennials have an average credit score of 638, and their overall financial situation may be improving. They tended to enter the workforce during the height of last decade's recession, which made it difficult to find jobs or secure their financial futures. However, their debt levels have decreased 8 percent while their mortgage debt has increased 6 percent. Baby boomers and those who are over the age of 70 both have average credit scores of more than 700. Baby boomers have an average score of 703 while those over 70 have an average score of 729.

Both age groups have significant mortgage debt, but that is generally offset by having little in the way of other debts. Those who are in Generation X are likely recovering from losses related to reduced home values during the Great Recession. They also have an average of $30,334 in non-mortgage debt, which is the highest of all the age groups.

Those who are overwhelmed by credit card debt or other obligations may benefit by filing for bankruptcy. Filing could result in a temporary stay of creditor contact or other collection efforts. There are a variety of eligibility and other requirements that an attorney can outline.

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