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Most people do not expect to ever pay off debt

On Behalf of | Jan 22, 2018 | Bankruptcy

Some people in Virginia might feel it is not possible to pay off all their debt. According to a survey by Credit.com, more than two-thirds of adults think they will never be able to pay debts in full.

Both the type of debt and the age of the debtor affected how pessimistic the person was likely to be. People who owed money on student loans, auto loans, credit card bills and mortgages were more likely to think they could pay off their debts while people who owed on payday loans and medical debt were less likely to think so.

While no age group was particularly optimistic about paying off their debts; people tended to think it was more unlikely the older they got. Nearly two-thirds of millennials, the 18-to-36 age group, said they didn’t know when they would pay it off or they didn’t expect they ever would. A slightly higher percentage of Generation X, ages 37-52, had the same belief. Among baby boomers, 53-71, 70 percent had the same expectation, and 83 percent of the 72 and older group, the Silent Generation, expected to get out of debt. Those who did expect to pay off their debts thought they would do so in about nine years.

Unfortunately, some people may be unable to keep up with their debt payments along with their other expenses. When this happens, they might want to consider filing for bankruptcy. A bankruptcy immediately stops creditor harassment and any actions against a person for debt, including foreclosure and lawsuits. It also gives a person the opportunity to make a fresh start financially. With a Chapter 13 bankruptcy, a person may also keep assets such as a home. A Chapter 13 allows people to reorganize debt into affordable payment plan. After filing for bankruptcy, people can begin rebuilding their credit with secured credit cards and other strategies.