Many people living in Connecticut rely to some degree on credit. Of course, this is isn’t unusual as Americans typically maintain a high level of credit card debt. As of February 2019, the amount of revolving credit debt in the United States was $35.4 billion, according to the Federal Reserve. Overall, the increase in consumer credit overall was less than expected.
While credit can be useful for many consumers, it also has its drawbacks. People use credit to afford large purchases and manage unexpected expenses. In addition, people who travel often rely on credit cards as opposed to carrying large amounts of cash. However, too much debt can lead to financial problems. In some cases, consumers are unable to manage even minimum payments on what they owe. Late fees and interest can make it almost impossible to pay off these debts.
Because so many people carry credit card debt, consumers may not realize that they are in significant financial trouble. As a result, they may struggle with unresolvable obligations for years, damaging their credit and potentially limiting life choices. In some cases, bankruptcy may have been one debt relief option that could help these individuals get a fresh start.
Contrary to what many people believe, bankruptcy does not always require filers to give up personal property or assets. In addition, it may also be possible to enter a Chapter 13 repayment plan that comes with a court-supervised repayment program. This can be a good option for people who have a steady income or debts that are not normally dischargeable in bankruptcy, such as student loans or certain taxes.
Individuals considering bankruptcy might benefit from consulting with an experienced attorney. The lawyer may be able to review the client’s case and make suggestions regarding bankruptcy and other debt relief options.