Of all the debt carried by families in the United States, credit card debt is among the most insidious. In Kentucky and across the country, credit cards are used (and overused) as part of the daily lifestyle, but this habit can have devastating consequences. In order to avoid relying on a Chapter 7 bankruptcy filing to get back on one's financial feet, there are a number of options to handle existing debt effectively.
According to recent reports, Americans collectively owe more than $1 trillion in credit card debt. The average household in Kentucky carries a balance amounting to thousands of dollars, leaving some families in financial crisis. Thankfully, there are a variety of ways to handle the challenge of credit card debt, from consolidation to Chapter 7 bankruptcy.
When one considers the question of debt as it pertains to young people, the first type that comes to mind is debt accrued for educational purposes. Certainly, student debt makes up a considerable chunk of the money owed by millennials here in Kentucky and elsewhere, but an uncertain economy and an increasingly tumultuous job market has led many young people to rely on credit cards to shore up the difference. Before considering a Chapter 7 bankruptcy filing, it may be helpful for millennials to gain a better understanding about how their debt works, and what it will take to pay it down.
The holiday season is swiftly approaching, and with it comes the inevitable "holiday hangover" of credit card debt following the festivities. Millions of Americans, both here in Kentucky and elsewhere in the nation, have a tendency to overextend their credit to pay for gifts for loved ones during the holidays. This can lead to serious debt complications when the decorations have been taken down. While Chapter 7 bankruptcy is always an option to handle serious credit issues, there are also ways for Kentucky residents to approach paying down holiday debt.
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.