Financial literacy can be a challenging topic for many Americans, particularly as it pertains to credit card use. American society is built on credit, and the resulting debt load can weigh heavily on Connecticut residents. However, the key to lowering debt and avoiding the need for a Chapter 7 bankruptcy filing is to understand how credit cards work, and how best to mitigate the debt they generate.
A research study conducted by a prominent financial website suggested that some 35 percent of Americans with outstanding balances on credit cards only pay the minimum amount as proscribed by their lender. Combined with the 8% who routinely made less than the minimum payment, this accounts for nearly half of all credit card users who are making the same error. A minimum payment simply is not enough to counter debt in most cases.