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The impact of credit cards on young people

A NBC News/GenForward survey found that only 22 percent of millennials are not carrying debt. The survey found that 11 percent have more than $100,000 while roughly 25 percent of those between the age of 18 to 34 have more than $30,000 in debt. This has caused young people in Massachusetts and elsewhere to save less, which could leave them vulnerable to a financial emergency.

The survey found that only 30 percent of people in this age group have $1,000 in a savings account. Only 1 percent has $100,000 in savings while 24 percent said that they had no savings at all. In addition to student loans, many millennials are trying to pay down credit card balances. Of those who took part in the survey, 46 percent said that they had credit card debt while 36 percent said that they had student loan debt.

A person who has a college degree is likely to make more money than those who don't have a degree. They are also more likely to make $50,000 or more per year compared to those without one. Of those surveyed, 42 percent said that they would be in significant trouble if they had to pay a $1,000 emergency expense. When broken down along racial lines, African-Americans were most likely to say that this was the case.

Individuals who are overwhelmed by credit card debt may find it hard to put money in a savings account or cover other expenses. One option to reduce or eliminate such debt is to file for bankruptcy. In most cases, credit card balances may be discharged through a Chapter 7 case in a short period of time. This may be able to help a person overcome their financial difficulties and obtain a fresh start.

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