When most people speak of debt, it is usually in negative terms. However, financial analysts do not see all debt as inherently bad. In fact, increases in consumer and business debt are often viewed as signs of a growing economy. Eventually, however, debt relief may be sought by Connecticut consumers and others around the nation when the level of debt has created financial problems for them. Experts strongly suggest taking steps to eliminate consumer debt in order to achieve other long-term financial goals.
Recent reports show that Connecticut ranks fifth in the country for the average number of credit cards owned, at 3.23 each. A related statistic revealed that the state has the third highest national average credit card balance, at over $7,200. Maintaining monthly balances prevents consumers from saving money, whether for emergency situations or retirement.
One possible option to pay down some credit card debt many may have in the near future is a federal tax refund. Any reduction of the card balances will lower the amount of interest accumulating. When card balances are eliminated, consumers will have more available cash to set aside for savings or to invest. It has been suggested that an acceptable level of debt should be no more than 30 percent of a person’s available credit.
Unfortunately, not everyone has a tax return coming or has the means to pay down their current balances. Those in need of debt relief should contact a Connecticut bankruptcy attorney for assistance. A knowledgeable attorney will help clients develop a plan specifically tailored to their situation that will help get their finances back in order.