Many Connecticut consumers have credit cards and use them for everyday purchases. Over the holidays, people tend to spend more money and use their credit cards more often, leading to higher balances. For some people, holiday spending can lead to balances they cannot manage. With the addition of rising interest rates, missed payments and other difficult financial factors, a person may need to look for debt relief options.
For people with credit card debt, it can be a significant problem when interest rates rise. The rates were raised shortly before the new year, and it is possible they could increase two times in 2019. Over the past year, increases in the interest rate has led to increased credit card balances. In the third quarter of the financial year, credit card debt rose by as much as $15 billion.
Credit card debt is high for consumers, with the average household carrying an average of almost $7,000. Simply put, higher interest leads to higher credit card payments. Consumers are having to pay more towards interest, and estimates suggest it amounts to almost $2.4 billion because of higher interest. Also adding to consumer financial struggles include higher mortgages, student loans and even car loans.
When a person is no longer able to manage his or her credit card debt, there may be options available by which that person can seek debt relief. Consumer bankruptcy allows a Connecticut consumer to deal with debt, including credit card debt, once and for all. A complete evaluation of the individual situation can determine if filing for bankruptcy is a smart choice.