Millennials are having problems making ends meet. About 57 percent of them named poverty and economic inequality as their top concern in a survey conducted this spring by the Center for Marketing and Opinion Research for the University of Akron’s Bliss Institute of Applied Politics. The survey showed that concern about poverty or inequality was most severe among millennials, but got better with age, dropping to 43 percent for Generation X (born between 1965 and 1984).
Ohioans are suffering from financial problems more than most of the country. Since 2000, median Ohio household income plunged 16 percent, or more than $9,300, the second-worst in the nation. It dropped more than 20 percent in major urban counties such as Montgomery (Dayton), Lucas (Toledo) and Cuyahoga (Cleveland). Millennials are the generation feeling the brunt of these problems, since an economy that promised good jobs and pay to college graduates didn’t deliver. Instead, the middle class has been negatively impacted by cheapening labor, even though productivity increased.
In addition, millennials are burdened by student loans. According to the Project on Student Debt report conducted by The Institute for College Access & Success, the average Ohio student loan debt stood at $29,353 in 2014, a 53% increase from 2004. Since many people cannot find a job after graduation with pay high enough to meet expenses and also cover their high student loan payments, it is no wonder that student loan borrowers wind up seeking debt relief.
The skilled and seasoned Ohio bankruptcy 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. We can help by looking at your income, your debts, and coming up with a plan that’s best for you.
Call us at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) or email for your free consultation so we can determine what debt relief solutions will work best for you.
The Millennial “Success Story”
According to “The Millennial Success Sequence,” published by the American Enterprise Institute and the Institute for Family Studies and written by Wendy Wang of the IFS and W. Bradford Wilcox of the University of Virginia and AEI, there exists a “success sequence,” which, if followed, increases the chances of avoiding poverty.
To increase success, life events should be sequenced as follows:
- First get an education, at least a high-school diploma.
- Then get a job.
- Then get married.
- And only then have children.
Wang and Wilcox have found that only 3 percent of oldest millennials ages 28 to 34 who follow this sequence are poor, and that 86 percent of them have family incomes in the middle or top third of incomes.
Recommendations for success include: education focused on high-level occupational skills, the subsidization of low-paying jobs, and “public and private social marketing campaigns” to promote the idea of not marrying until the end of the success sequence and not having children until after marriage.
Other Reasons for Poverty
In addition to student loan debt and failure to follow the “success sequence,” millennials must deal with additional poverty-inducing situations:
- Competition from older workers who remain in the workforce due to the economy, keeping younger workers from moving up
- Industry efficiencies to increase productivity and profits by automating or outsourcing labor that eliminate many of Ohio’s higher-paying manufacturing jobs
- Debt — According to the latest studyfrom WalletHub, Americans are piling on credit card debt at levels that rival the heart of the recent financial crisis, and the average household with debt now owes $7,941 to credit card companies. In addition to credit card debt, millions of people are struggling with debts that include debts for mortgage, medical, and student loans.
Is Bankruptcy Right for You?
If you find yourself with mounting debts and facing poverty from your financial problems, you 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 will 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. It can help you eliminate the bills you cannot afford while allowing you to keep assets such as your car and your house.
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. You will 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 you explore other options that may be available, 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 today! Call one of our conveniently located office branches at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati) or email for your free consultation so we can determine what debt relief solutions will work best for you.