Consumers don’t tend to consider the impact of major life changes like marriage, having a child or unemployment on credit reports and financial goals enough. This is even more true for young consumers. According to a recent survey published by TransUnion, Millennials, those Americans in their twenties that are sometimes called “Echo Boomers” or “Generation Y”, are the least likely group to consider the impact of major life events on their credit.

Sacramento is a burgeoning city that is filled with Millennials, thanks to the low cost of living (for California), the proximity to the Bay Area, the abundance of good food and entertainment, and even the new Kings arena. But to really take advantage of this cultural abundance, young consumers need to have a handle on their credit and their finances.

Any number of life events, major and ordinary, can have a significant impact on a young consumer’s credit and financial security. Late rent payments, only making minimum credit card payments, unemployment, having an expensive auto loan, and marriage are all very common occurrences in a Millennial’s life. But not having a grasp of the consequences can make that transition from teens to twenties to thirties very difficult and stressful.

What’s the answer? Get educated and see if bankruptcy is the right call. For many young people, bankruptcy can be a savior. Credit card balances have a way of growing if they aren’t paid off every month. This ends up taking larger and larger portions of paychecks until the consumer is paying for beers and pizza from three years ago instead of planning and investing in the future. Chapter 7 Bankruptcy can get rid of those credit cards, sometimes in as short as a four-month process.

Another benefit of filing bankruptcy when still young is that the negative impact of the bankruptcy will be minimized and the benefits can be maximized. The sooner that heavy debt load is removed, the sooner that part of the paycheck can go towards buying a home or investing in a retirement plan. Thanks to the magic of compound interest, if Millennials invest a small portion of their income in a 401k, they might actually be able to retire someday.

Chapter 13 Bankruptcy can also be a good solution for indebted Millennials as well because it gives time to repay nondischargeable debt and get the unsecured debt discharged over a period using a plan that accounts for the income and expenses of the consumer.

Young people today are feeling distraught after entering the real world that is suddenly not quite as full of bright shining opportunity as they were promised when they were younger. Many are finding it extremely difficult to find gainful employment that pays enough to live a comfortable lifestyle. Reducing debt may be the only way to fix the problem. Fortunately, bankruptcy is designed to do just that. By discharging some or all of a young consumer’s unsecured debt, bankruptcy will give those of the Millennial generation the opportunity to participate in the economy and accomplish their goals.