Kentucky Financial Distress Profile
Composite distress data for 120 counties, updated quarterly from federal sources. Household debt, delinquency, foreclosure law, and county-level distress scores compared to national averages.
· Data from NY Fed, CFPB, BLS, US Courts, Q4 2025
Behind on your mortgage in Kentucky? See your options under Kentucky law →
Kentucky ranks #12 nationally for household financial distress. County Distress Index details are listed separately for its 120 counties. The national State Distress Index average is 50.0.
How Does Kentucky Compare to the National Average?
Kentucky is above the national average on 1 of 5 key household distress metrics. Credit card delinquency stands at 11.8% (below the 12.4% national rate), auto loan delinquency at 4.9%, and total debt per capita at $43,160.
Since 2019, credit card delinquency in Kentucky has risen 4.0pp and total household debt has grown 23.6%. Most metrics remain below the national baseline.
Key Statistics at a Glance
State Distress Index: Kentucky
Domain Breakdown
The national American Distress Index reads 44.6 (Typical). On average, its inputs sit higher than in 45% of their own quarterly histories since 2005. Kentucky's State Distress Index of 69.0 (Second-most distressed fifth) is computed from 4 equal-weighted domains covering delinquency, default and legal signals, labor, and the safety-net buffer.
Kentucky vs. National Average
Delinquency rates measure the share of loan accounts 30 or more days past due. Higher rates signal greater household financial stress. Debt and balance figures are per capita, adjusted for state population.
Download all states (CSV)Kentucky vs. National: 5 Key Metrics (Q4 2025)
Source: NY Fed Consumer Credit Panel / Equifax, Q4 2025.
Similar States by Distress Level
States ranked closest to Kentucky (#12) on the State Distress Index. Peer comparison reveals whether distress patterns are regional or structural.
| State | SDI Score | Quintile | Highest Domain |
|---|---|---|---|
| Kentucky | 69.0 | Second-most distressed fifth | Default & Legal |
| Mississippi | 70.3 | Most distressed fifth | Delinquency |
| Georgia | 69.1 | Second-most distressed fifth | Default & Legal |
| Alabama | 68.7 | Second-most distressed fifth | Default & Legal |
Change Since 2019
Pre-pandemic 2019 values provide a baseline for how distress has evolved. Credit card and auto loan delinquency have risen sharply in most states since pandemic-era forbearance protections expired.
| Metric | 2019 | 2025 | Change | Nat'l 2025 |
|---|---|---|---|---|
| Credit Card Delinquency | 7.8% | 11.8% | +4.0pp | 12.4% |
| Auto Loan Delinquency | 5.0% | 4.9% | -0.1pp | 5.2% |
| Mortgage Delinquency | 1.02% | 1.04% | +0.0pp | 0.94% |
| Total Debt per Capita | $34,910 | $43,160 | +23.6% | $63,200 |
| CC Balance per Capita | $2,480 | $3,140 | +26.6% | $4,350 |
Kentucky Foreclosure Law Summary
Understanding your state's foreclosure process is critical if you fall behind on mortgage payments. Kentucky primarily uses judicial foreclosure.
Kentucky requires judicial foreclosure for virtually all residential mortgages. The lender files a complaint in Circuit Court; after judgment, a Master Commissioner (a court officer, not a sheriff) advertises and conducts the sale.
Full Kentucky foreclosure law guide →State-Level Divergence
National averages mask wide variation across states. Kentucky's credit card delinquency of 11.8% falls below the national 12.4%, but other metrics tell a more nuanced story. The state's Distress Index reads 69.0 (Second-most distressed fifth). The Household Debt by State roundup tracks all 51 jurisdictions.
Distress by County
The County Distress Index scores every county in Kentucky on a 0-100 scale using five equal-weighted domains: delinquency, default and legal, debt burden, labor, and safety net and buffer. Kentucky's 120 counties average 64.7 — above the national county mean of 50.0.
Distress Fifth Distribution
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Most Distressed Counties
| County | Score | Distress Fifth | Top Driver |
|---|---|---|---|
| Bell County | 87.8 | Most distressed fifth | Labor |
| Knox County | 85.9 | Most distressed fifth | Default & Legal |
| Magoffin County | 85.9 | Most distressed fifth | Labor |
| Clay County | 85.3 | Most distressed fifth | Default & Legal |
| Martin County | 85.3 | Most distressed fifth | Labor |
Bell County ranks #24 most distressed nationally out of 3,144 counties.
Least Distressed Counties
| County | Score | Distress Fifth | Top Domain |
|---|---|---|---|
| Oldham County | 19.8 | Least distressed fifth | Labor |
| Woodford County | 30.2 | Least distressed fifth | Default & Legal |
| Spencer County | 39.1 | Second-least distressed fifth | Labor |
| Shelby County | 39.3 | Second-least distressed fifth | Default & Legal |
| Scott County | 39.9 | Second-least distressed fifth | Default & Legal |
The gap between Kentucky's most and least distressed counties is 68.0 points — Bell County (87.8, Most distressed fifth) vs. Oldham County (19.8, Least distressed fifth). That spread reveals two very different economic realities within the same state.
Explore all 120 Kentucky counties →CFPB Mortgage Complaints in Kentucky
The Consumer Financial Protection Bureau has received 2,604 mortgage complaints from Kentucky since 2012 — 57.5 per 100,000 residents, below the national rate of 129.3 per 100K. Kentucky ranks #47 of 51 jurisdictions for complaint density.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Complaints | 121 | 165 | 152 | 176 | 139 | 203 |
Source: CFPB Consumer Complaint Database. Filed a mortgage complaint? Search the complaint database.
Bankruptcy Filings: Kentucky
Bankruptcy filings reflect the downstream consequence of sustained financial distress — when households exhaust savings, fall behind on debt, and run out of alternatives. Kentucky's filing rate exceeds the national average.
Source: U.S. Courts, Administrative Office. Table F-2: Cases Commenced by Chapter. Per-capita rates use 2024 Census population estimates.
Credit Distress: Kentucky
The Philadelphia Fed Consumer Credit Explorer tracks credit health metrics from Equifax data. 18.2% of Kentucky residents have debt in collections — above the national rate of 13.9%. 18.5% have subprime credit scores (below 620), and 43.0% are credit-constrained.
Source: Philadelphia Fed Consumer Credit Explorer. Data from NY Fed Consumer Credit Panel / Equifax. 2025 Q1.
Economic Context: Kentucky
SNAP enrollment and unemployment rates provide upstream context for household debt distress. Higher food assistance enrollment signals that more families are struggling with basic expenses, while elevated unemployment directly reduces income available for debt service.
Sources: USDA Food and Nutrition Service, BLS Local Area Unemployment Statistics. Population: U.S. Census Bureau 2024 estimates.
Safety Net Strength: Kentucky
The Safety Net Index measures how much support infrastructure is available to households in financial distress — combining healthcare coverage, food assistance, emergency housing funds, and legal protections. Kentucky scores 43.5 out of 100 (Weak), ranking #33 of 51 jurisdictions.
Component Breakdown
Sources: Kaiser Family Foundation (Medicaid, 2024), USDA FNS (SNAP, 2025), U.S. Treasury HAF program status, state foreclosure statutes.
Frequently Asked Questions
What is the credit card delinquency rate in Kentucky?
The credit card delinquency rate in Kentucky is 11.8% as of Q4 2025, ranking #19 among all states and DC. The national average is 12.4%. This rate has risen from 7.8% in 2019.
How does Kentucky's household debt compare to the national average?
Kentucky residents carry $43,160 in total debt per capita, below the national average of $63,200. Debt per capita has grown 23.6% since 2019. Kentucky ranks #48 nationally for total household debt per capita.
What is the auto loan delinquency rate in Kentucky?
Auto loan delinquency in Kentucky stands at 4.9% as of Q4 2025, below the national rate of 5.2%. This ranks #24 nationally. The rate was 5.0% in 2019.
What type of foreclosure process does Kentucky use?
Kentucky primarily uses judicial foreclosure. This means foreclosures must go through the court system, giving homeowners more time and procedural protections. See our full Kentucky foreclosure law guide for timelines, protections, and legal resources.
Is Kentucky above or below the national average for financial distress?
Kentucky scores 69.0 on the State Distress Index (Second-most distressed fifth), ranking #12 of 51 jurisdictions. That is 19.0 points above the national state average of 50.0. This composite score is built from 4 domains: delinquency, default and legal, labor, and safety net and buffer. Separately, the national American Distress Index reads 44.6 (Typical) for the country over time. On average, its inputs sit higher than in 45% of their own quarterly histories since 2005.
How many CFPB mortgage complaints have been filed in Kentucky?
The CFPB has received 2,604 mortgage complaints from Kentucky since 2012, a rate of 57.5 per 100,000 residents. This ranks #47 of 51 jurisdictions. The national average is 129.3 per 100K. Companies responded to 98.3% of Kentucky complaints within the required timeframe.
What is the bankruptcy filing rate in Kentucky?
Kentucky had 12,129 bankruptcy filings in the 12-month period ending Dec 2025, a rate of 266.3 per 100,000 residents — above the national rate of 169.1 per 100K. This ranks #6 of 51 jurisdictions. Chapter 7 filings account for 54.5% and Chapter 13 for 45.3%. Filings changed +10.2% year-over-year.
What percentage of people in Kentucky have debt in collections?
18.2% of individuals in Kentucky have debt in collections, above the national rate of 13.9%. This ranks #8 of 51 jurisdictions. Additionally, 18.5% of Kentucky residents have subprime credit scores (below 620), compared to 16.9% nationally. Data from the Philadelphia Fed Consumer Credit Explorer (NY Fed / Equifax).
What is the SNAP enrollment rate in Kentucky?
572,689 residents of Kentucky receive SNAP benefits, an enrollment rate of 12.6% — above the national rate of 11.2%. This ranks #15 of 51 jurisdictions. SNAP participation has changed -0.6% year-over-year. The pre-pandemic rate was 10.8%.
How strong is Kentucky's financial safety net?
Kentucky scores 43.5 out of 100 on the Safety Net Index, ranking #33 of 51 jurisdictions (Weak). The score combines Medicaid coverage (25.7% enrollment rate, expansion state), SNAP enrollment (12.6%), Homeowner Assistance Fund status (exhausted), and foreclosure legal protections. The national average is 48.1.
Which Kentucky counties have the highest financial distress?
Bell County is the most distressed county in Kentucky with a County Distress Index score of 87.8 (Most distressed fifth), ranking #24 nationally out of 3,144 counties. Knox County (85.9), Magoffin County (85.9), Clay County (85.3) round out the top distressed counties. Oldham County is the least distressed at 19.8 (Least distressed fifth). See all 120 counties at /counties/kentucky/.
How long can foreclosure take in Kentucky?
Kentucky uses judicial foreclosure, meaning every foreclosure goes through the court system. In Kentucky, the bank can foreclose in roughly 150–270 days from first missed payment to sale — though individual cases vary with cure periods, mediation, postponements, court backlogs, and bankruptcy filings. Homeowners have a right to cure: You can cure the default at any time before the court confirms the commissioner'…. The homestead exemption is $5,000. Full details at /help/foreclosure/kentucky/.
Where does Kentucky rank for financial distress?
Kentucky scores 69.0 on the State Distress Index (Second-most distressed fifth), ranking #12 of 51 jurisdictions. 1 of 5 key metrics exceed national averages. The highest SDI domain is Default & Legal. County Distress Index details are listed separately by county. The safety net ranks #33 (Weak).
Data Sources
NY Fed Consumer Credit Panel
State-level household debt and delinquency statistics from the Federal Reserve Bank of New York, based on Equifax credit bureau data. Updated quarterly.
American Distress Index
Composite index tracking U.S. household financial distress across five equal-weighted domains. National score as of the latest available quarter.
Kentucky Foreclosure Statutes
State foreclosure law data compiled from primary statutory sources and validated against legal databases. Last verified 2026-03-10.
CFPB Complaint Database
Mortgage complaints filed with the Consumer Financial Protection Bureau, 2012–present. Density calculated using 2024 Census population estimates.
USDA SNAP State Activity
Monthly SNAP participation by state from the USDA Food and Nutrition Service. Enrollment rates computed against 2024 Census population estimates.
U.S. Bankruptcy Courts
Annual bankruptcy filings by chapter and district from the Administrative Office of the U.S. Courts. Per-capita rates computed against 2024 Census population estimates.
Philadelphia Fed Consumer Credit Explorer
Quarterly credit health metrics (collections, subprime share, delinquency, credit-constrained rates) from Equifax via the NY Fed Consumer Credit Panel.
Safety Net Index
Composite score from KFF Medicaid enrollment (2024), USDA SNAP participation (2025), U.S. Treasury HAF program status, and state foreclosure legal protections.