Many people in Kentucky and across the country have debt. It almost seems an expected part of life anymore. Does this mean that the average American qualifies for bankruptcy?
Whether one qualifies for bankruptcy is not just about debt. It has to do with his or her income level as well. A recent report broke down what kind of debt most households have and how much. It did not specify a median income level.
So, what kinds of debt are most common and how much does the average household have? According to the report, the average family has nearly $16,000 in credit card debt, a mortgage of roughly $174,000, a $27,000 auto loan and close to $50,000 in student loans. Add on interest, and that is a whole lot of money owed to quite a few lenders. A quick Google search shows that the median income in Kentucky is about $56,000. While some may be able to make do and pay their debts on this, others may find themselves in a perpetual state of owing creditors.
Sometimes, with strict budgeting, it is possible to get out of debt without having to seek outside debt relief. However, there are also those in Kentucky and elsewhere who may find their financial obligations too much to handle. Bankruptcy may be an option when income is insufficient and debt is too far out of control. An experienced attorney can assist those who feel unable to meet their debt obligations in coming up with a plan to tackle it head-on. For some, the answer will be bankruptcy and for others, various other debt-relief options may be available.
Source: fool.com, “Here’s a Breakdown of the Average American’s Household Debt,” Maurie Backman, Dec. 24, 2017