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Debt relief: Credit card debt outweighs emergency funds for many

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.

The survey, conducted by a personal finance organization, reported that 29 percent of consumers in the country have less savings than credit card debt. This number has increased from the data provided in 2018, when 21 percent had more credit card debt than savings. Currently, over 40 percent of households have credit card balances averaging $5,700. Despite rising pay levels, higher costs of living have resulted in an actual decline in wages.

Other survey information corroborates the fact that many people in America are struggling with their finances. In fact, only 39 percent of consumer have adequate funds to pay for a $1,000 car repair or visit to the emergency room. While these numbers are alarming, it is difficult for many to reduce their credit card balances. Experts suggest a variety of strategies, ranging from automatic payments to consolidating debt.

If someone is struggling with the burden of credit card debt or other obligations, it may be worthwhile to explore various options of debt relief. A Connecticut bankruptcy attorney can explain the different solutions available and help create the best path forward for an individual. An experienced lawyer will partner with clients to help them regain their financial foothold.

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