Kentucky residents and others owe more than $14 trillion to creditors. According to the Federal Reserve of New York, debt totals over the final three months of 2019 rose by $601 billion compared to the final three months of 2018. The fourth quarter of 2019 was the 22nd consecutive quarter in which America’s cumulative debt total increased. Mortgage debt increased by $120 billion to $9.56 trillion.
The rise in mortgage debt is partially the result of lower interest rates. When interest rates are low, an individual can generally spend more on a home without going over his or her budget. Individuals between the ages of 18 and 29 saw their overall debt totals increase to $1.05 trillion. The Fed report indicated that the number of home loans being given to people in this age group rose to the highest levels since the third quarter of 2007.
Auto loan debt went up by $16 billion between the third and fourth quarters of 2019. That was the 35th straight quarter in which Americans have gone deeper into debt to acquire transportation. Student debt increased to $1.51 trillion by the end of 2019, and the Fed report said that more than $100 billion of that debt was held by people who were 60 or older.
Those who are need of bankruptcy and debt relief help may be able to obtain it by talking with an attorney. An attorney may be able to talk more about the process of filing for bankruptcy and the benefits a person might derive from doing so. A legal representative might also provide some insight into the role that credit counseling could play in helping a person regain control over his or her finances. Typically, debtors must take credit counseling courses during a bankruptcy proceeding.