You might be making what others describe as a living wage, but that does not mean you are not struggling. Many people in Connecticut who earn living and middle-class wages are faced with more debt than they know how to handle. Sometimes, it is through the slow accumulation of smaller debts that are hard to notice until things have piled up. In other cases, a single financial disaster can throw people into a difficult situation. Either way, filing for Chapter 13 bankruptcy could help you deal with your debt.
There is little denying the financial impact that the Great Recession had on certain generations. Compared to their parents, both Gen Z and millennials entered adulthood with more conservative attitudes toward finances and debt. However, as time has gone on and memories of the early 2000s are falling away, more and more people in these younger generations could find that bankruptcy is their best bet for handling debt.
Debt is nothing new, but the levels of debt that many Americans now have are much higher than in the past. Credit card debt reached a record high of $834 billion in 2018, and student loan delinquency rates are not looking good either. The reasons behind these growing debts can vary from person to person, and those reasons will also affect how any given person will approach debt management. Figuring out where some of their debt comes from can help Connecticut consumers in this decision.
Methods for dealing with debt are a popular topic of discussion on the internet. While some of these methods might be appropriate for a select group of people, they could be putting many others at risk for falling even deeper into debt than before. Home equity borrowing is especially troublesome as it can increase the risk of foreclosure for Connecticut homeowners.
People in Connecticut with past-due bills are likely already familiar with creditors and their sometimes harassing collection attempts. While there are rules in place that are meant to protect consumers from abusive debt collection practices, the protections are not as thorough as they could be. Newly updated rules could soon make life easier for those struggling with debt management while also fielding harassing attempts at debt collection.