Americans have a debt problem; this much is clear thanks to a study by the Federal Reserve Bank that suggests collective household debt in the United States reached some $13.86 trillion in 2019. Here in Kentucky and elsewhere in the nation, households struggle to pay credit cards, medical bills, student loans, car payments and many other types of debt. However, financial experts offer a variety of options to struggling households, from debt reduction plans through to Chapter 7 bankruptcy.
Debt, especially high-interest debt like that accrued from credit cards, can be notoriously difficult to pay down. For some Kentucky residents, it may be helpful to create a comprehensive plan to start paying down debt. For more challenging debt situations, a more involved solution like debt reconstruction or Chapter 7 bankruptcy may be required.
It has been estimated that some 75 percent of all consumers pass away with debt still outstanding. Credit card debt, as well as other forms of debt, do not simply disappear when the borrower dies, as these obligations then become the burden of the estate. This is why some Kentucky residents may wish to consider a Chapter 7 filing if debt remains a consistent struggle in late life, to avoid passing it on to family members.
According to some studies, the average household in America carries some $5,700 in credit card debt. This type of debt, while unsecured and therefore eligible for discharge in Chapter 7 bankruptcy filings, can be one of the most difficult types of debt to retire. Thankfully, there are a variety of strategies that can be employed by Kentucky residents to pay down credit debt before considering bankruptcy.
Most American households carry some form of credit card debt. Here in Kentucky and elsewhere in the nation, however, this debt can take a serious financial and psychological toll on those who carry it. Understanding how credit works and how best to pay it back is the first step toward solving a debt problem, in advance of more involved solutions like Chapter 7 bankruptcy.
The average household in the United States spends thousands of dollars every year on what many refer to as "nonessentials," including entertainment, dining out and subscription services. Here in Kentucky and elsewhere in the nation, those with credit cards are statistically more likely to spend even more than the average on these items. Before those expenses turn into debt that can only be solved through Chapter 7 bankruptcy, there are several ways consumers can cut back.
Debt is no stranger to the American people, with credit card debt and medical debt making up a large portion of the amount owed on a national scale. Recently, one Reddit user revealed that a medical emergency led to him accruing some $16,000 in debt by the time he was in his late 20s. This is a common situation for many Kentucky residents who may be seeking relief from serious debt issues. There are a variety of ways to tackle debt depending on the severity of the amount owed, from planning effectively for the future to Chapter 7 bankruptcy protection.
Most Americans carry some form of debt, with medical bills and credit card debt often being the most prominent. Here in Kentucky, some residents are finding it harder and harder to pay down the debt they have accrued. Thankfully, there are a variety of ways to handle mounting debt that are not just limited to Chapter 7 bankruptcy.
For years, the so-called millennial generation eschewed credit cards in favor of paying down mountains of student debt. But more recently, young adults in Kentucky and elsewhere have fallen prey to the siren song of credit cards to help make ends meet. As a result, they now inhabit the demographic most likely to require debt forgiveness plans like Chapter 7 bankruptcy in order to dig their way out of unmanageable debt.
Despite an uptick in the national economy, many American households are still laboring under the burden of credit card debt. According to some sources, the average Kentucky debt is somewhere around $6,500 per card. This has caused concern for consumer advocates, who worry people will find themselves in a serious financial position should the economy slow. While Chapter 7 bankruptcy is always an option in cases of significant debt, there are other options available as well to curb the tide.