Bankruptcy: Will making financial New Year’s resolutions help?

On Behalf of | Dec 10, 2019 | Bankruptcy

With New Year’s Day and the end of 2019 less than a month away, some people are already thinking ahead to their 2020 resolutions. Weight loss and other forms of personal improvement are some of the most well-known resolutions, but they are far from the only popular ones. Rather than file for bankruptcy in the next year, a significant number of adults would rather improve their financial situations. Paying off debt is certainly a great goal, but many resolutions are more than the average person in Connecticut can realistically handle.

Fidelity Investments conducted the online 2020 New Year Financial Resolutions, surveying just over 3,000 adults over the age of 18. When asked to choose between shedding 5 pounds or saving $5,000, 84% responded that they would much rather build up their savings. Another 84% also said that paying off at least some of their debts was more important to reducing screen time for things like phones and computers.

The study also determined the two resolutions that will be the most popular in 2020, none of which involve weight loss. Instead, the number one resolution is reducing debt and saving more money. The second resolution predicted to be the most popular is to spend less overall. Adults are not necessarily expecting these resolutions to be easy, as 51% of participants responded that unexpected expenses frequently get in the way of these goals.

Living with the daily pressure of debt is stressful, and most Connecticut residents would prefer to pay off all their balances and move forward with their lives. Setting goals for doing so can be helpful, but barriers such as unexpected expenses, low wages and more can make it impossible. Rather than live in fear of collection letters and harassing phone calls from bill collectors, a person can begin repairing his or her financial situation through bankruptcy.