The consumer credit reporting agency Experian has released its annual State of Credit report. The company’s analysis of consumer debt showed small improvements in credit scores in 2017 compared to 2016. The report also highlighted the challenges faced by consumers that some in Kentucky might recognize.
Among people ages 21 to 34, the average credit score had risen four points to 638. This demographic also reduced its overall debt by 8 percent even after taking out more mortgages. The report concluded that the initial pain inflicted by the Great Recession on this age group appeared to be easing.
The next older set of people, ages 35 to 49, bore the largest amount of mortgage debt at an average of $231,774. Experian’s researchers attributed this buying homes in pricier neighborhoods before the housing crisis tanked values. This age group struggled the most to make debt payments. Even so, the average credit score for this generation went up three points to 658.
The report also recorded a three-point gain for people ages 50 to 70 whose average credit score reached 703. For people over the age of 70, they had the highest average credit score of 729 and the lowest late payment rate. This generation, however, still carried quite a bit of mortgage debt with an average amount of $156,705.
On the individual level, financial circumstances vary regardless of age group. A person experiencing financial difficulty because of a job loss or medical crisis might want to explore legal options for debt relief. An attorney could provide a financial analysis to help a client understand eligibility for a bankruptcy filing. To pursue this option, an attorney could prepare financial disclosures and file court paperwork.