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.
Credit cards are a common financial tool for most Connecticut residents and others around the country. Many consumers love the convenience of using a card to buy items or services, while others enjoy amassing points to gain rewards from purchases. However, rampant or uncontrolled use of credit cards can lead to problems. To avoid the need for debt relief, experts warn against the danger of having too much credit card debt and how to eliminate it.
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 data revealed that consumers in this country have exceeded $1 trillion in credit card debt. This translates to roughly $9,000 of debt for each household, according to reports. Understandably, this has propelled many families across the nation into the need for debt relief. There are, however, several cities that far exceed the average level of household debt. Unfortunately, two cities in Connecticut are in the top 10 in the nation with the highest averages.
Spring has arrived in Connecticut and all across the nation. Many individuals set apart time for "spring cleaning" and give their residences extra attention as they begin a new season. This process can be applied to someone's budget as well. Some consumers are in need of debt relief because their finances have been left unattended, and credit card balances have continued to mount. Experts recommend developing a plan to clean out debt and get one's financial house back in order.
Credit card companies often extend offers to Connecticut college students or other young adults initially entering into the workplace. Many are excited about the possibility of getting their first credit card and accept the offers. While some cardholders maintain the habit of paying off their balances in full each month, there are others who are in a cycle of carrying ongoing debt on their cards. If unaddressed, some even find themselves in need of debt relief to break the cycle. Experts recommend taking control of one's debt and creating a plan to pay it off as quickly as possible.
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.
Connecticut residents love to see their state ranked near the top of many lists. It is always encouraging to know that one's state may rank highly as a good place to live or have wonderful educational facilities. However, being close to the top on certain rankings isn't always positive. As many consumers are struggling financially and in need of debt relief, it is not edifying to see the state nearly top the list of areas with the most credit card debt in the nation.
Residents of Connecticut and elsewhere around the country often think of milestones as things to celebrate. Personally, birthdays and anniversaries are marked each year. On a national level, the government recognizes when the population reaches new records or unemployment hits an all-time low. However, some milestones are indicative of the financial struggles many are facing. These statistics reflect the need for debt relief for many consumers.