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Current debt statistics

Many people in Kentucky are deep in debt, and they are not alone. Nationwide, the average American household has about $16,000 in credit card debt, $172,800 in mortgage debt and $49,000 of student loan debt. Paying the debt may become more difficult for many people because the Federal Reserve may increase interest rates.

According to NerdWallet, total credit card debt in the country is currently around $747 billion. It projects that the total credit card debt will rise to $842 billion by 2019. Monthly payment amounts for revolving debts such as credit cards increase when interest rates do, meaning that people will have to make larger payments when the interest rates are increased.

TransUnion reports that the average balance of unsecured personal loans is currently $7,729. Transunion believes that the delinquency rate for personal loans will reach 3.72 percent by the end of 2017. It is currently at 3.66 percent. The credit reporting agency also indicates that it expects delinquencies in credit cards and automobile loans to increase. It believes that this is because of loans that are made to subprime borrowers and to those with poor credit histories rather than a negative overall market.

People who are unable to keep up with their payments on their unsecured debt balances may want to talk to a bankruptcy attorney. By filing a Chapter 7 petition in personal bankruptcy, a debtor may be able to discharge unsecured debt balances so that he or she might concentrate on repaying secured debts, including mortgage and car loan payments. An attorney might advise a client about which types of debts might be discharged in a bankruptcy case. A lawyer may also help by filing the petition and the supporting schedules for the client.

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