When it comes to dealing with financial hardships, it may seem that such issues might be less of a concern to those who earn a higher-than-average income. However, as certain types of debt can continue to build exponentially over time, similar issues could affect virtually anyone. Recent studies indicate that individuals in Kentucky who earn a higher income could still struggle to keep up with monthly obligations should credit card debt become an issue.
Recent studies suggest that credit card debts across the nation reach up to more than $800 billion, with the average American household carrying more than $6,000 in credit card balances. These studies also indicate that those who earn a higher income may be more inclined to carry higher balances on credit accounts. According to reports, individuals who earn between $100,000 and $200,000 a year are the most likely to carry balances on high-interests credit card accounts.
At first, monthly payments on a credit account may seem manageable for individuals in this income bracket. However, with average interest rates coming in at just over 17%, balances on a credit account can build up quickly. Those facing similar circumstances may also be less capable of building up a financial safety net and as such, even a minor monetary emergency could create a potentially devastating scenario.
Regardless of how it happens, those who begin to struggle to make ends meet due to high levels of credit card debt might not know how best to approach the situation. Individuals in Kentucky who wish to seek insight on all their available options for debt relief could choose to speak with a bankruptcy attorney for guidance in choosing a path. An attorney can evaluate the circumstances a client is facing and assist in developing a plan to reduce or eliminate debts through the proper channels.