There are many reasons why Americans can fall into debt. Sometimes, it can be a question of poor planning or financial habits, but for many Connecticut residents, unexpected circumstances like divorce or loss of a job can also cause debt to mount. Thankfully, there are a variety of ways to reduce debt, from credit counseling to Chapter 7 bankruptcy.
A good first step to take is to review a household’s expenses to see where corners can be cut. Reducing spending on entertainment or dining out might be a necessary sacrifice in the service of lowering monthy expenses and redirecting funds to pay down debt. Seeking professional support in developing a comprehensive budget can also be a smart move, especially if budgeting is not something an individual has much experience with.
Credit counseling may also be a good step to take for some residents. Credit counselors can help those in debt negotiate terms with creditors, which may help with lowering interest rates or waiving late fees and other penalties. For those in serious need, Chapter 7 bankruptcy is also an option. A Chapter 7 filing liquidates some assets to pay down creditors while discharging other non-secured debts like those associated with credit cards.
No one formula for debt reduction will work for every Connecticut resident. Whether preparing for debt consolidation, credit counseling or even Chapter 7 bankruptcy, it can be beneficial to seek out the support of an experienced bankruptcy attorney. Professional guidance can be of immense help in navigating the sometimes challenging waters of debt reduction.