There are many reasons why consumers in Kentucky and elsewhere reach for their plastic to pay for things even when they have money in the bank. Maybe it is the rewards perks that drives this spending. Possibly, it is the incentive that one will not have to pay any interest on a large purchase for a certain period of time. No matter the reason for putting the vast majority of purchases on credit cards, the reality is that this form of debt has skyrocketed. And with this debt increasing, there is the ever-increasing need for individuals to address this debt by exploring debt relief options, such as bankruptcy.

While unemployment is at its lowest in a 50-year period, reports indicate that credit card debt is at its all time high. Many question how this can be. The rate of unemployment is 3.6%, and although job growth has slowed down, wages do continue to rise. Nonetheless, the total amount of credit card debt is at an all time high, reach $930 billion. Many believe that this is evidence that the economy isn’t doing well; however, it may simply be evidence that many Americans are left behind during the economic recovery phase.

It comes as no surprise that many individuals still find it challenging to make ends meet. Even higher-earning families face financial problems when everything is taken into consideration. This includes the high costs of childcare, housing, healthcare and student loans. And when unexpected expenses occur, many Americans are unable to cover them through savings. Thus, credit cards are relied on to address these sudden expenses.

Because credit card debt remains a steady financial problem in society, the desire to overcome this type of debt will always be needed. Thus, wiping this debt out and obtaining a fresh start may be in the best interest of a debtor, making a Chapter 7 bankruptcy an ideal step to take. Those considering bankruptcy should understand the process, what options they have and how best they can serve his or her financial future through this process.