A person's credit score affects his or her ability to get a loan, obtain good interest rates and more. Not only do lenders view borrowers with good scores more favorably, they are also more likely to give those consumers access to more diverse credit offers. A record number of Americans now have good or excellent credit scores, so it might feel counterintuitive to think of this group being at risk for bankruptcy. That risk is unfortunately very real.
Living with debt is a daily struggle, especially for those who feel as if the cycle of debt will never end. It does not take long to end up in a situation where debt is the most defining aspect of a person's life. In fact, young adults in Connecticut are frequently starting their careers already saddled with more debt than they can realistically handle, although bankruptcy may help.
A budget is an important tool for managing personal finances. Many people in Connecticut already use budgets to track their bills, daily expenses and spending habits. This is an excellent habit that even more people should take advantage of, but it is not necessarily enough to conquer debt and avoid bankruptcy.
Having a college degree is usually necessary for securing a good, well-paying job. But since most people in Connecticut have to take on student loans to get their degrees, getting that well-paying job might not even do much to advance a person's financial situation. Discharging student loans in bankruptcy is also virtually impossible, although getting rid of other debt can reduce some of the burden when it comes to repayment. However, a recently proposed bill could change all of this.
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.
Paying off all debts in the smallest amount of time might be the ideal situation, but it is not realistic for the vast majority of people. Instead, a person is more likely to make the minimum payments or even miss payments if he or she has too much debt. People who are in this type of situation may try to avoid bankruptcy by consolidating debt with personal loans, but it may not be as effective as some hope.
Things are not looking too bad for Americans right now. The economy is performing relatively well, unemployment rates are low and there fewer delinquent credit cards than in 2009. Despite this, many Connecticut consumers might not realize just how close they are to needing 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.
Buying a vehicle is a significant investment, but most people do not have any other options. Having a car is necessary for things like driving to work, going to the grocery store and even picking kids up from school. Cars do not last forever, though, and some Connecticut consumers might have to buy a new vehicle before they are ready. This can put people into precarious financial situations that may need to be addressed through bankruptcy.
Getting an education is very important for young adults in Connecticut, but unfortunately that education usually comes with a very large price tag. However, while many college grads leave school with a significant chunk of debt, some have much more than others. Since student loans usually cannot be discharged through bankruptcy, some people might not consider just how helpful bankruptcy can be.