Kentucky residents facing spiraling debt crises are not alone. According to a GOBankingRates.com survey of 3,000 adults surveyed nationwide, 49 percent replied that they were in debt. Of those, mortgage loans were the largest source of debts. After that, came student loans, followed by credit card debt and then medical debt.
About 20 percent or respondents listed their mortgage as their biggest source of debt. Of those surveyed, the median amount of their outstanding mortgage debt was $59,500. In Kentucky, specifically, mortgage debt tied with student loan debt as respondents' foremost source of debt. In fact, of the respondents nationwide surveyed, more than 13 percent reported that their major source of debt was student loan debt, with a median debt amount of $9,100.
When it comes to credit card debt, according to the survey approximately 10 percent of respondents reported that their biggest source of debt was credit card debt. High interest rates plague those who already have high credit card balances on more than one credit card. Paying more than the monthly minimum amount can help stem the tide of accumulating interest.
Of those surveyed, the fewest amount of respondents reported that medical debt was their biggest source of debt. Of those surveyed that had medical debt, the median amount owed was as low as $600. Even those who have medical insurance may still find themselves facing medical debt problems. According to a survey by Kaiser/New York Times, 38 percent of adults surveyed who had medical insurance still had problems meeting their outstanding medical obligations over the past year or reported that another member of their household had to use a credit card to pay for medical expenses.
No matter what your source of debt is, those in Kentucky who find they are simply unable to deal with it may want to consider filing for Chapter 7 bankruptcy. Filing for bankruptcy can stop creditor harassment, and provide debtors with a means of dealing with outstanding debt. While not all debts can be eliminated through Chapter 7 bankruptcy, many can, freeing more income for the debtor to tackle his or her other obligations. In the end, through bankruptcy, debtors can achieve a means for settling their debts in a way that provides them with the fresh financial start they need to start anew.
Source: GoBankingRates, "The Biggest Source of Debt for Americans in Every State," Cameron Huddleston, Oct. 10, 2016