Many Connecticut residents and others around the nation are overwhelmed with credit card debt. Recent reports show that the level of debt in the country is over $1 trillion. While most consumers are able to make their payments on time, nearly one quarter of the nation’s total debt is delinquent. As some individuals seek debt relief because of these delinquencies, experts offer some insight on how this situation has evolved.
A delinquency is defined as a payment that is more than 30 days past due. Over 20 percent of consumers have reported that they have made late payments on a credit card at least one time. A personal finance website recently surveyed consumers about the reasons why others missed payments to their credit card companies as well as their personal reasons. Demographic questions were also asked to evaluate behavior among the various age groups.
Over half of the respondents stated that delinquencies for others increased because more nonessential purchases were being made. Also contributing to credit card delinquencies was the need to pay other debts, such as student loans or mortgages. Other reasons cited in the survey included higher prices on products, stagnant wages and the ease of obtaining credit cards.
However, when asked for the personal reasons an individual was delinquent, the answers were different. The most common reason cited was that the individual simply forgot to make a payment. Others stated there were emergency situations or that they had to pay for necessary items.
Regardless of the reasons, excessive credit card debt can be daunting to Connecticut residents. An experienced bankruptcy attorney can offer debt relief solutions to help turn a seemingly hopeless situation around. A knowledgeable lawyer will work with clients to get their financial situation back on track.