Many Connecticut residents and others across the country use their credit cards primarily for large purchases so that they can take advantage of mileage or other reward programs. They are able to pay the bills in full and not incur interest or increasing balances each month. However, there is an increasing number of people who are forced to use their credit cards for basic monthly needs. These consumers are likely struggling to make ends meet and are in need of debt relief.
According to recent financial indicators, the economy is improving in several areas for residents of Connecticut and elsewhere around the country. However, what about those individuals who are not seeing any progress in their finances and are, in fact, in need of debt relief to ease their struggles? For many, a debt consolidation loan is a way to minimize the number of payments required each month as well as possibly paying a lower amount of interest overall.
Many Connecticut residents and others around the country carry a significant amount of credit card debt from month to month. If those consumers were told the interest rate for their credit cards was to be capped at 15%, it would apparently be good news for them at first glance. Since some of the cardholders with large balances are often in need of debt relief, this seems like a positive move for them. However, that plan could end up causing more financial strain on the very people it seemingly would help.
According to 2018 year-end reports from the Federal Reserve, total revolving debt for the nation has exceeded $1.05 trillion. Of that amount, credit card debt accounts for $870 billion of the total. Connecticut residents and others across the country have nearly 480 million active credit card accounts. While some consumers are able to pay off their balances each month in full, others may just be trying to keep their heads above water financially and are in need of debt relief.
The news is full of stories about the improving economy for our nation. It is not uncommon to hear stories about lower unemployment rates and increased levels of disposable income. However, many Connecticut families are still mired in financial struggles. Some have reached the decision to file for bankruptcy to get their finances back in shape. Once that major decision has been made, there is still another one to consider -- should someone file for Chapter 7 or Chapter 13 bankruptcy?