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After holiday spending, is Chapter 7 the right option?

Many Connecticut consumers spend a significant amount of money during the holiday season. Starting after Thanksgiving, there is a sharp increase in gift purchases, and many of them are made by credit card. After Christmas shopping and holiday spending, some people may not be able to manage their debt properly. In some circumstances, Chapter 7 bankruptcy may help.

Statistics indicate that almost half of consumers in the United States accumulate a significant amount of credit card debt during this time of year. Almost one third of these consumers use their credit cards to cover holiday travel expenses, while others use credit cards to cover the costs of entertaining people. Of course, the most common reason why consumers accumulate credit card debt this time of year is for buying gifts.

Consumers may find it beneficial to curtail spending at this type of year by doing things such as sticking to a budget for certain items and making travel plans in advance. The holidays are the most expensive time of year for many people. The repercussions of spending too much can follow a Connecticut consumer into the New Year.

If a person finds that his or her holiday spending has made a precarious financial situation worse or has led to unmanageable debt and accumulating interest, it may be beneficial to move forward with bankruptcy. Chapter 7 bankruptcy offers consumers the opportunity to deal with their credit card debt and other types of debt in an organized and responsible manner. This step can offer a person struggling with late payments and past-due balances the opportunity to obtain a fresh financial start.

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