Recent statistics show an increase in the number of bankruptcy and student debt cases in recent years. A panel of researches conducted a bankruptcy and student debt survey to find the following information. Some teenagers age 10 and younger hold personal credit card accounts. Most undergraduate college students (2/3) have at least one credit card to their name. The average college graduate makes their way into the business world with nearly 4-5,000 dollars in credit card debt alone. Not to mention student loans as a factor for overall debt.

Beginner Finance Management Believed to be the Main Issue

Several laws have recently been passed in an effort to address the bankruptcy and student issue. One of many reforms makes it more difficult for lending institutions to target the college student population for marketing tactics. Also, bankruptcy laws have seen a change in the direction of procedure reformation. The biggest concern with regards to the bankruptcy and student debt issues lies in the fact most college students live on their own and have trouble managing their finances the first time around.

Recent surveys also showed an influx of credit card use during purchases over the use of cash or debit. It is believed a good portion of bankruptcy and student cases evolved from incu8rrring interest, higher minimum payments, and difficulty managing these finances from funding purchases through credit cards.

With regards to bankruptcy and student loans, several graduates begin to feel overwhelmed with debt, once they receive their first repayment notifications. Students must realize they may not file for bankruptcy in an effort to rid this source of debt. These unsecured loans exist even in the event of discharging a bankruptcy because many funds originate from government agencies and non-profit organizations. The only way bankruptcy and student loans follows through to clear debts pertains to the individual’s ability to prove the debt cannot be repaid over any given amount of time (nearly impossible).

Some lawyers have managed to find a loophole in the laws governing bankruptcy and student loans. Thus, there has been an increase in graduates filing for bankruptcy discharges in recent years. In every bankruptcy and student loan case, the judge makes the final ruling as to whether the debt can or cannot be excused by a discharge. In the meantime, a lender must hold off on sending the graduate any collection notices. Some students find dealing directly with their lending corporations a more fruitful avenue than immediately filing for bankruptcy. Just remember, you graduates out there, financial freedom from debt is just around the corner. Although being in debt has been incorporated into our American culture beyond separation, just remember that living a life without debt is possible, and it’s close at hand. Hold on, and keep hope; give us all hope for the future.

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