In Texas and across the United States, millennials are experiencing difficulties with their credit card debts. Millennials frequently become tempted by credit card perks. Consequently, many millennials are delinquent in the payments on their credit cards. The delinquency ratio was not as severe in previous generations. Many young people formerly viewed stock trading with wary eyes in the past. These individuals were previously known for their frugality. However, current studies conducted by the Federal Reserve Bank of New York shows that many young consumers have lost control over their spending habits.
Signup bonuses appeal to younger generations who seek out the best cash back offers. Others want credit cards with no interest. A typical credit card charges an 18% interest rate for consumers with good credit. However, some credit cards carry higher interest rates. Although millennials might want to save money via bonuses, young people between the ages of 18 and 29 cannot afford to pay the high interest rates.
Consequently, many young consumers have more than 90-day delinquencies on their credit cards. According to a CreditCards.com industry analyst, people should not have credit cards unless they are able to pay their statement balances by the due dates. Paying off the full statement balance renders a 0% interest rate. The only exception to this general rule is when a consumer has a good credit score that enables them to transfer a high-interest rate to a zero rate.
Millennials who find themselves in heavy debt may try to solve their predicaments by taking on additional jobs or using debt settlement strategies. Some of these individuals are still unable to cope with the fact that their debts are higher than their incomes. Any person who is in serious debt may want to set up a free consultation with a Chapter 7 bankruptcy lawyer.