Bankruptcy an option for consumers eager to decrease debt

On Behalf of | Aug 7, 2019 | Bankruptcy

The current unemployment rate in America is relatively low, but that does not mean that some Connecticut consumers feel confident about the future. Reducing debt is a priority for many people right now. However, some people may struggle more than others when it comes to paying off debts. For these individuals, bankruptcy could be a smart choice.

Consumer confidence in the economy is waning, although that may simply be part of an ongoing cycle. Attitudes toward things like purchasing vehicles and homes appear to move cyclically, and positive attitudes are currently declining from a recent peak. In fact, many people are more worried about the future of the economy despite the low 3.7% unemployment rate as of July 2019. This means that consumers are working toward not just decreasing debt, but also building up savings.

Part of the concern is over future consumer goods prices in Connecticut and elsewhere. There is some worry that the possibility of new tariffs could cause the price of certain products to rise, which could potentially compromise some people’s financial stability. This decrease in consumer confidence has many people eager to slash their debt as quickly as possible.

Unfortunately, paying off debt takes much more than an eager attitude. If a person has many different debts or low and stagnant wages, paying things off is out of reach when the money simply is not there. Rather than fall deeper into debt because of delinquent accounts and hefty interest rates, an individual could consider whether personal bankruptcy is an appropriate option for his or her situation.