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.
These numbers represent record levels of both credit card debt and the number of cards in circulation. Another statistic of concern is that the year-end increase in credit card debt was the largest increase of any category of household debt. Experts are concerned that credit cards are not being managed properly.
Delinquencies involving credit cards are also on the rise. Roughly 37 million accounts have been delinquent more than 90 days. Surveys have shown that the states with higher costs of living have more credit card debt. Connecticut is one of five states with an average credit card debt that exceeds $7,000.
Making late payments or carrying high balances on credit cards can certainly have a negative impact on one’s credit score. It is important to follow a budget and use credit cards judicially. Advisers recommend creating a plan to eliminate credit card debt. This can prove daunting for those consumers who have to use credit cards to pay for everyday expenses.
Those in need of debt relief should not continue struggling alone. A Connecticut bankruptcy attorney can offer guidance to those who hope to get a fresh start on their finances. An experienced lawyer will help clients develop a recovery plan designed to meet their specific needs.