by Jenny Sutton
Today, with the emergence of credit cards and more student loans, young people are becoming closer to financial problems. Many young people leave and go to college around the age of 18 and become more financially independent. This causes difficulties because they are inadequate of making credit decisions with high balances.
About 150,000 people who were under 25 declared bankruptcy in 2001, which was a 150 percent increase when compared to ten years ago. While the bankruptcy percentage of the entire population is also increasing, the largest increase is in the age group under 25. Credit cards are one problem since they are easy to get and have immediate access to spending. Another issue is the amount of student loans. With higher education become more expensive, students are forced to take out more loans and go further in debt. Also, with the recession, families are unable to help their children with college as they could have in the past. All these factors along with the fact that young people are unable to manage their debt, causes them to suffer financially and fall into bankruptcy at an early age.
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