Owe tens of thousands in extra debt? Bankruptcy is an option

On Behalf of | Nov 18, 2019 | Bankruptcy

Borrowing money may not always be ideal, but it is unavoidable for most people. Mortgages, auto loans and student loans can quickly pile on top of one another, putting consumers in a position where bankruptcy might be the best option. However, people in Connecticut are borrowing money for a lot of other reasons, too.

A little more than 25% of people in America have debt that is not a student or auto loan, business loan or mortgage. The average amount of that additional debt comes to $19,833. Of those with this extra type of debt, nearly 40% took out loans to pay for medical treatments, such as dental work and fertility treatments. Another 31% borrowed money to pay for either in-home care or nursing homes for elderly family members.

It does not matter whether a person has the money to cover the cost of medical or dental care for an immediate problem. Experts recommend that people build up a savings account with from three to six months’ worth of living expenses. Planning ahead for emergency expenses is certainly a good idea, but this is simply not realistic for many Connecticut residents. Even if someone manages to stash away the recommended amount of savings it could easily be wiped out by one or two sudden expenses.

Living in debt is stressful, and most people simply want to find a way to pay off the money they borrowed. Unfortunately, this is simply not an easy task. Interest rates, daily living expenses and much more get in the way of what is usually a well-intentioned effort to pay off a debt. When these factors spiral out of control and leave a person financially vulnerable, he or she should consider whether bankruptcy could address the constant stress of living with debt.