Even confident consumers may need bankruptcy

On Behalf of | Jun 12, 2019 | Bankruptcy

Is ignorance really bliss? Not when it comes to personal debt. A surprising number of people in Connecticut might not even realize how much debt they have. While this might feel like a coping mechanism to prevent stressing over finances, it can ultimately land consumers in a difficult place. For some, delving into the details of debt and addressing it through bankruptcy can be a smart way to get back on track.

It was recently reported that 21% of American consumers are not even sure if they have any debt. Another 31% know they have debt, but do not know how much they are paying in credit card interest. Since 24% of consumers who have credit cards currently owe over $10,000, the interest these individuals are paying is probably fairly steep. Those who carry debt on more than five different cards — 12% of consumers — may also be shelling out a significant amount in interest alone.

Despite this, 49% of American consumers believe they are managing multiple credit cards well. This perception might be misguided, though. If people are unaware of how much they are paying in interest, they could be struggling with their multiple balances and not even realize it.

Interest rates can cause credit card balances to grow out of control faster than some might anticipate. This means that Connecticut consumers who believe they are keeping up with their debt may be inadvertently taking on even more every month. For these individuals, bankruptcy may be one of the best options for addressing out of control debt.