There are lots of causes of stress out there, but for millennials, financial issues create more stress than politics, work or health. A new study by Wealthsimple, an online investment management firm, found that money problems are twice as stressful as work and several times more stressful than politics. The study showed that nearly half of millennial women find money the most stressful thing in their lives, compared with 34% of millennial men.
This stress can be so overwhelming that another study conducted by Payoff showed that the symptoms for financially induced stress are indistinguishable from those of Post-Traumatic Stress Disorder (PTSD). This study found that 35.3% of millennial participants (ages 22 to 29) met the criteria for PTSD related to financial events, largely due to the numerous financial pressures at that life stage.
If you are a millennial struggling with debt and finances, there is help available. The skilled and compassionate Ohio debt-relief attorneys at Fesenmyer Cousino Weinzimmer understand that financial problems can happen to even the most hard-working and well-intentioned people. We offer a free consultation to evaluate your financial situation by looking at your income, your debts, and coming up with an individual debt-relief plan that’s best for you.
Call us or contact us online today to set up your free consultation.
The Greatest Sources of Financial Stress
Millennials are dealing with major stress-producing issues that come together at once. They are often searching for jobs and establishing a career, looking for a place to live or relocate, setting up a household, thinking about getting married or starting a family. They know they should be saving for retirement, but they don’t know much about investing — if they even have money to invest — and many are burdened with student loans or other debt. In general, this generation feels they have too many demands on their money, and few funds left over to save.
According to a Student Loan Hero survey, conducted on May 7, 2017, of 1,001 millennials ages 22 to 37, 39 percent of millennials say debt is the No. 1 source of money stress. Making the situation worse, about two-thirds of millennials never learned how to handle debt.
The survey asked the question, “What stresses you out about money?” Millennials responded as follows:
- 39 percent — too much debt. Credit card debt and student debt are the biggest sources of stress, followed by medical bills, mortgages, car loans, and payday loans. Sixty-one percent of millennials with student loans said these are their most stressful type of debt.
- 29 percent — managing a budget.
- 29 percent — affording rent and other necessities.
- 20 percent — the fear of making mistakes or acting on bad advice.
- 16 percent — not knowing financial options.
- 10 percent — understanding credit.
Many millennials feel it’s too difficult due to balance high debt payments with various living expenses or other financial goals, and Ohioans are suffering financial problems worse than most other Americans. Since 2000, median Ohio household income plunged 16 percent, or more than $9,300, the second-worst in the nation; and millennials are feeling the brunt of these problems, since an economy that promised good jobs and pay to college graduates didn’t deliver.
In addition, many millennials who are burdened by student loans cannot find a job after graduation with pay high enough to meet expenses and cover their high student loan payments. It is no wonder that student loan borrowers often wind up seeking debt relief.
What can millennials do about this? With their highest earning years still ahead of them, they can focus on growing their income so that debts and expenses become more affordable. In addition, millennials who explore debt repayment strategies and improved financial behaviors such as careful budgeting, limiting credit card expenditures, and putting aside some money for savings and investment, will ultimately be able to minimize their money in the long run.
When Bankruptcy Can Help
Millenials who are facing mounting debts and financial stress may want to consider the fresh start available by filing for bankruptcy. While bankruptcy should not be taken lightly, it is a legal way for people to have many debts forgiven.
The most common types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 is a full liquidation of all assets, referred to as a fresh start bankruptcy. It may discharge unsecured debts, including credit cards, medical bills and installment loans. It stops, prevents or resolves collections, loan deficiencies, repossessions, wage garnishment, and civil judgments.
Chapter 13 is a consumer debt reorganization that enables debtors to repay financial obligations affordably and in one monthly payment over a three- to five-year period. If you successfully complete the repayment plan, remaining eligible debt is discharged and you can keep your assets. And you’ll get relief from harassment by creditors who must stop all collection activity during the term of repayment.
Contact Us for a Free Consultation
If you are a millennial overwhelmed with debt, the seasoned and compassionate Ohio debt-relief attorneys at Fesenmyer Cousino Weinzimmer offer a free consultation to evaluate your entire financial situation. Even if total discharge is not possible, we can help with options such as negotiating with lenders and modification or consolidation of debts. We understand what you are going through and will walk you through the process.
Delaying can only worsen your situation, so call the Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer or contact us online today for your free consultation so we can determine what debt relief solutions will work best for you.