Kentucky is Getting More Expensive
Kentucky is world-renowned for its bourbon distilleries, horse racing scene, and bluegrass music.
Of course, that’s only scratching the surface of what the state has to offer. The Bluegrass State is home to the world’s longest cave system, more navigable miles of water than any state in the contiguous United States, and a unique local culture that incorporates Southern, Appalachian, and even Midwestern influences.
Another thing that Kentucky is home to? An average credit card debt of over $5,000 per household. On its surface, this doesn’t appear too bad: Kentucky has the 4th lowest credit card debt in the country.
However, when combined with other data, the situation becomes grim.
According to the US Census Bureau, Kentucky has a median household income of $52,295 and a poverty rate of 16.3%. The median household income is significantly lower than the national average which stands at $65,712 and the poverty rate is higher than the national average which is 12.3%. The state also has one of the lowest credit scores in the country. Many residents of Kentucky can’t afford to pay off their debt and may need financial support from some form of debt settlement program for their unsecured debts.
Kentucky Residents Are Turning to Their Credit Cards
The COVID-19 pandemic created a high degree of financial uncertainty and we are now seeing a significant price jump on just about everything — inflation has risen to its highest level in 40 years.
Credit card debt in Kentucky
The median credit card debt may only be $5,140, but many Kentuckians owe much more than that and are often finding it difficult to make the minimum payments on their credit cards.
Low income, higher cost of living, and unexpected expenses can wreak havoc on any household’s budget. When faced with increased expenses, most people will turn to their credit cards. It is very common to find it challenging to repay credit card debt.
Many people in the state of Kentucky are struggling with debt, find it difficult to repay their credit cards, and fail to make even the minimum payments required to keep their credit cards from becoming delinquent. In an attempt to stay afloat with their living expenses, many Kentucky residents max out their credit cards.
You can contact a nonprofit credit counseling organization, at no cost, to get advice on the best debt relief solutions, discuss potential tax consequences of less than full balance debt resolution, and get information on matters such as fees and interest charges, credit repair services, debt adjusters, Kentucky debt settlement, student loans, payday loans, the Kentucky statute of limitations on debt collection, wage garnishment, law firm debt collectors and whether you need legal advice, Kentucky debt consolidation, and answers on file for bankruptcy questions.
Credit card debt can spiral out of control
If you fail to make the minimum credit card payments, you will be charged extra fees and increased interest rates. That is how a credit card debt trap is created and many people feel they cannot escape it. No matter how much they pay back to their creditors, it feels like the debt is constantly ballooning.
Credit card debt and credit score
Many people find that they are unable to make any progress on their debt payments due, no matter how hard they struggle. The combination of a maxed-out credit card and failure to make minimum credit card debt payments can escalate quickly into delinquent debt. When your credit card debt escalates, your credit report takes a hit. If you need a car loan or a personal loan in the future, banks and financial institutions will check your credit score. If it is too low, they will be reluctant to lend money.
The good news is that several programs for debt relief in Kentucky are available to consumers, which provide information on the debt relief options available and can help you find the best way to become debt free.
As a Kentucky resident, you have a trusted debt specialist to help you with your finances and become debt free by taking advantage of our debt relief programs.
Americor’s certified debt specialists have helped thousands of people with their unsecured debt. We have the tools to help you overcome the debt trap and advice on the best debt relief program. Contact us today and our advisors will assess your circumstances and suggest the right debt solution suited to your unique needs.
Get out of Debt Quickly in Kentucky
Though out-of-control debt can feel like an issue that is going to last forever, there is always a debt relief option available to Kentucky residents. Take a look at each debt relief solution outlined below.
The first step to Kentucky debt relief may be to seek credit counseling. Credit counseling can help you understand your current financial situation and develop a debt management plan for getting out of debt. As one of the most reputable credit counseling agencies, Americor credit counselors are trained professionals that can provide debt relief guidance and assistance on budgeting, money management, and debt repayment strategies.
We can also review your current debts and help you identify potential solutions to reduce or eliminate them. Through credit counseling, you can get the help you need to make a fresh start and get on track to financial success.
Debt management involves creating a repayment plan to help you manage your debts and gradually pay them off.
A debt management program typically involves working with a credit counseling agency that can negotiate lower interest rates, waive late fees, and restructure payments to make them more manageable. The goal of debt management is to help you become debt-free in a reasonable amount of time.
Debt consolidation loans
If your credit score is high enough, you could receive a low-interest debt consolidation loan. You would use the loan to pay off your high-interest credit card debt. You will still be responsible for paying off the consolidation loan, but will not be penalized by high-interest rates charged by credit card companies.
Debt consolidation involves combining multiple debts into one lower-interest loan with one monthly payment. This can reduce monthly payments, simplify debt management, and help you reach financial security. When considering debt consolidation, it’s very important to make sure you understand all of the terms and conditions associated with the loan, and ask for advice if you need help.
Debt settlement is another option for Kentucky debt relief that is better than filing for bankruptcy. This involves negotiating with creditors to reduce the amount of debt owed. Debt settlement companies typically charge a fee for their services, and it is important to understand that debt settlement can hurt your credit score. It is also very important to make sure that the debt settlement company you choose is reputable and trustworthy.
In some cases, bankruptcy may be the best option for Kentucky debt relief. Bankruptcy is a legal process in which your debts are discharged or significantly reduced. It is important, however, to understand that bankruptcy can have serious negative long-term consequences, including damage to your credit score and difficulty obtaining credit in the future.
Americor for Debt Relief
Finding Kentucky debt relief can be a difficult and overwhelming process. It is important to seek professional advice and make sure you understand all of your options before making any decisions. With the right help and guidance, you can find a solution for your situation and get on the path to financial wellness.
No matter what type of Kentucky debt relief you consider, seek professional advice and take all your options into account before making any decisions.
Our Clients Say...
“In 2020, I was drowning in debt. I enrolled in Americor for my 10 creditors for $110,000… and today (three years later) I have cleared my entire balance. It was not an easy process, but Americor guided me through and I am debt free!”
“I was down $80k in business debt, and I remember hearing Americor radio advertising. My credit score was down to 570 from 810. I’ve been in the program for over 3 years. It works, just be patient. And my credit score is currently back up to 710!”