Missing a payment for a credit card or another type of debt can certainly lead to a series of unfortunate events for Connecticut residents. Initially, late fees are assessed and the balances continue to mount. One's credit score can suffer once credit agencies are notified of delinquencies, thus affecting the ability to obtain the best interest rates when making major purchases. Continued skipped payments can lead to repeated calls from collection companies and possible asset forfeiture should creditors decide to start the repossession process. It is important to understand the process of debt collection and how to avoid potential problems.
While their recommendations may vary, most financial experts suggest that Connecticut residents and others living elsewhere around the country should have roughly six months of their income set aside as an emergency fund. This money could be used in the event of unforeseen expenses, unexpected illness or the loss of a job. The idea of having extra money set aside is certainly appealing; however, many consumers are at the opposite end of the spectrum and are in need of debt relief. In fact, a recent survey revealed that most households owe more in credit card debt than they have in their emergency savings.
For Connecticut residents who are battling major debt problems, the good news is that there are remedies to resolve such problems and to move forward with life. When other debt relief options are found to be lacking, bankruptcy often turns out to be the most effective and complete resolution that gives people a true fresh start opportunity. Chapter 13 is a special kind of program that is based on a payment plan.
While recent reports indicate that the economy has improved, there remain many Connecticut residents and others around the country that continue to struggle to pay their bills each month. While certainly not the first course of action, some consumers make the decision to file for either Chapter 7 or Chapter 13 bankruptcy. Having the "clean slate" that bankruptcy often provides gives the impetus to get one's finances in order. However, things do not always go as hoped and some individuals may be wondering if they could actually file for bankruptcy a second time.