The idea of having financial difficulties may be a foreign notion for some younger consumers, especially those who have just graduated from college and have their whole lives ahead of them.
However, the recession found many people – both young and old – having difficulties with trying to get out of debt, so much so that some of them had to resort to bankruptcy. In 2009, more than 1.4 million people filed for bankruptcy, the most seen since new rules regulating the practice were adopted by the government in 2005.
Recently, the National Bankruptcy Research Center reported that approximately 145,000 bankruptcies were filed in May, a slight decrease from the 137,000 seen in April. However, the organization noted that filings during the first five months of this year are still 15 percent higher than during the same time in 2009.
Given these statistics, younger people just starting their careers may want to keep close tabs on their personal finance habits. Along with avoiding excessive use of their credit cards, experts note that setting up a budget will help ensure that consumers don’t spend beyond their incomes.