Student loans continue to be a significant financial concern for many people in Kentucky, even many years after graduating. Of course, there can be a number of factors contributing to an overall debt burden, including credit cards, medical bills, and mortgages. However, student loans are also some of the most difficult debt to eradicate, especially as it can be nearly impossible to discharge them in bankruptcy. Across the country, over 44 million people owe $1.5 trillion in student loan debt. This is the second largest category of debt in the United States, behind home mortgages and above credit card bills.
The consequences of minimum credit card payments
Kentucky consumers who are attempting to get out of credit card debt may want to make more than the minimum monthly payment. According to the American Consumer Credit Counseling, individuals should put 5 percent of their income toward paying down debt. However, paying anything above the minimum required payment is considered a good move. This is because it can take about 23 years to pay off a balance of $8,000 making only minimum payments.
