Kentucky residents who don't pay off their credit card balances each month can end up paying a lot of money over time. In fact, credit card companies make more money when people charge up debts that they cannot afford to pay off right away. When interest is compounded on a credit card balance, an average cardholder could be paying hundreds of dollars in interest each year.

It has been reported that the average U.S. household has unpaid credit card debt of about $5,700. Over 38 percent of U.S. households have unpaid balances. If people with an average credit card balance and a 14 percent interest rate does not pay off itheir debt for one year, the accumulated interest during that year is $440.

People often assume that young adults are less careful with their money than their parents. However, middle-aged Americans actually hold more credit card debt than people under the age of 35. Americans between the ages of 45 and 54 carry an average of $9,096 in credit card debt while Americans under the age of 35 usually have less than $6,000 in credit card debt. Unpaid credit card debt is not just a problem that affects low-income households. Households that earn $160,000 per year carry an average of $11,200 in unpaid credit card debt.

When people have a large credit card balance that they can only afford to make the minimum payments on, paying down the accumulating interest may be all that they can afford to do. An attorney might suggest that filing for bankruptcy is the best solution to their debt problems.