Recent college graduates across the U.S. and here in Maryland may already be struggling with the difficult job market, but their finances may be causing additional issues. The price of a college education is typically covered by student loans, the payments on which can last for decades. Many students also find themselves relying on credit cards to make ends meet. In fact, half of all American college students have four or more credit cards.
One recent college graduate has shared her story of post-grad struggles with the Huffington Post. She is now a freelance writer, but she also declared bankruptcy when she was 23 years old. She had four credit cards and more than $20,000 of student debt. Though her parents did not support her decision, she went ahead with the process and was able to gain a “clean slate.” She credits bankruptcy with being able to move forward with her life and gain success she would have been unable to achieve if not for the filing.
Her parents likely attempted to dissuade her due to the consequences of filing for bankruptcy, which include being unable to apply for future student loans and being a poor candidate for credit or other loans. However, many consumers find that bankruptcy is the best option for their situation.
Filing for bankruptcy is not a decision to be made lightly. Many individuals and families find that discussing their options with an experienced bankruptcy attorney can present different options in order to determine which course is best for their future.
Source: Huffington Post, “Bankrupt at 23: College grad’s financial ruin and rebound,” Feb. 11, 2013