An increasing number of young people in California and across the country are facing growing credit card debt and bills that are difficult to repay. Many millennials became adults during the financial crisis of 2008 and the immediate aftermath, and they became known for avoiding credit cards and other forms of personal debt. At the same time, many already struggle with significant amounts of student loan debt, especially as the cost of university has skyrocketed in the United States. However, millennials have also experienced growing incomes and professional salaries that are often accompanied by solicitations from credit card companies.

Card issuers have found that young Americans respond best to bonus offers rather than traditional advertisements offering zero-interest balance transfer. Instead, travel credits and signup bonuses have induced many young people to sign up for new credit cards. However, some are also facing difficulties repaying this mounting credit card debt. Among people age 18 to 29, more than 8% of credit card balances are overdue by 90 days or more. This is a relatively new trend, and it is also reflected in other concerning statistics. Young Americans are also more likely than people in other generations to have long-overdue credit card balances.

There are several reasons for this emerging issue. People may spend freely when working a high-paying job but encounter difficulties if they face a job loss or a medical crisis. Even people who quickly obtain another professional job can find themselves facing a difficult debt burden when recovering from unemployment. Credit cards are a particularly challenging form of debt due to high and growing interest rates.

Many young people find themselves trapped by escalating debt and are looking for a fresh start. A bankruptcy attorney can provide advice and guidance on how Chapter 7 or Chapter 13 personal bankruptcy can help people achieve debt relief.