It should come as no surprise that one of the most tenacious forms of debt is credit card debt. Connecticut residents seeking debt relief are often doing so as a result of unsustainable credit card debt. This may be partly due to the fact that credit cards are seeing more use now than ever before, prompting some consumers to seek alternate sources of credit.
In the first quarter of 2017 alone, over 171 million customers accessed credit cards. Estimates say households in the United States combine to make up some $1 trillion in credit card debt. Thanks to ease of access, this form of “revolving credit” has been on the rise for the last 10 years. Lenders who offer below average rates only add to the incentive to use credit, sometimes unwisely.
Households that have reached the limit of their credit are also searching for alternative forms of credit. In some cases, a car title loan is the answer for these households. This loan uses an individual’s car as collateral against a loan, which typically has to be paid off inside of 30 days. Ultimately, however, seeking further credit to compensate for maxed-out credit cards is only a short-term solution.
For Connecticut residents, there are several ways to achieve debt relief. One of the most effective is Chapter 7 bankruptcy, wherein unsecured debt like credit card debt can often be forgiven by a bankruptcy court. With the help of an experienced bankruptcy attorney, households facing mounting debt can rebuild their finances on stable ground.
Source: economicswire.net, “As Household Credit Card Debt in the U.S. Hits Record High Consumers are Left Looking for Other Means of Credit”, Dec. 2, 2017