In the third quarter of this year, Kentucky emerged as a standout state with one of the most modest increases in average household debt, as revealed in a recent report by WalletHub, a prominent personal finance website.
Average Household Debt in Kentucky Maintains a Position Among the Nation’s Lowest (Photo: CNBC)
A Deep Dive into U.S. Household Debt Trends
In a news reported by The Center Square, in November 14, 2023, despite broader economic challenges, the Bluegrass State experienced a mere $426 uptick, bringing the average household debt to $101,374. This marginal increase positioned Kentucky as the fourth-lowest among the 50 states, showcasing a resilience that defies the nationwide trend of mounting financial burdens. The study utilized comprehensive data from TransUnion and the Federal Reserve, with figures adjusted for inflation as of November 1.
The Federal Reserve’s latest report sheds light on the broader landscape of average household debt in the United States, emphasizing a staggering total of $17.29 trillion for the third quarter. Home-related financial obligations dominated, constituting a significant portion at $12.14 trillion, marking a $126 billion rise from the preceding quarter.
Student loans and credit card balances contributed substantially, reaching $1.6 trillion and nearly $1.1 trillion, respectively. Despite this, the report also highlighted a concerning trend of increased delinquency rates across most sectors. Notably, the Federal Government’s COVID-19 relief program spared student loans from this average household debt trend by suspending payments through October.
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Regional Variances: Kentucky Stands Ground Amidst Neighbors
According to the report published by Commonwealth Journal, Kentucky’s commendable position in minimizing average household debt growth becomes even more apparent when compared to its neighboring states. With a total personal average household debt of $164.71 billion, Kentucky ranked 30th in the nation for the third quarter, experiencing an increase of just over $744 million from the previous quarter.
Notably, only West Virginia managed a lower per-household increase, with Ohio, Indiana, and Virginia following with varying degrees of average household debt and increases. This regional analysis underscores Kentucky’s unique economic stability, providing a nuanced perspective on the complex factors influencing household finances in the current economic climate.
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