Financial trouble can strike at any age and for virtually any reason. Even those who feel as if they have adequately prepared for emergencies should understand that it is impossible to foresee everything that might come up in the future. These types of financial troubles seem to be particularly troublesome for baby boomers in Connecticut. Many are turning to bankruptcy as a result.
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.
There is perhaps nothing inherently wrong with having a credit card. Some Connecticut consumers use credit cards to improve their credit scores, or to make specific purchases in order to earn reward points. Paying off the balance every month is often important to maximizing these benefits. Unfortunately, it is easy to end up carrying increasingly larger balances from month to month. As millennials struggle with growing balances, some may find that bankruptcy can be an effective tool for handling overwhelming amounts of debt.
Household debt has been growing for over a decade, but it does not all come down to consumer spending. Much of the consumer debt that people in Connecticut now live with is the result of borrowing just to survive the ongoing aftermath of the Great Recession. Experts are cautioning that the growing household debt could cause serious problems for some people should the country hit another recession. Economic decline could be a common factor among those who choose to file for bankruptcy.
No matter how healthy a person's diet may be or how often he or she exercises, it is nearly impossible to avoid serious medical problems. Whether because of an illness, accident or other unexpected event, at some point in time most people in Connecticut will need to seek medical care. Even for seemingly minor health issues, the resulting medical bills can be debilitating. Those medical bills are a driving factor in many personal bankruptcy filings.
Consumers in Connecticut generally do not want to carry a balance on their credit cards. Still, many have trouble when it comes to actually paying those balances off. Consumers who have higher balances might struggle more than others when it comes to paying down debts, and some may benefit from considering bankruptcy.
Attending college often feels more like a requirement than an optional move after high school graduation. Not only do many jobs now require even entry-level employees to have graduated from college, but having a college degree often feels like job security in highly competitive fields. Unfortunately, that security comes at a cost. An increasing number of personal bankruptcy filings are being blamed on student loan debt.
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.
Debt can complicate dreams of buying a home. When adults are busy scrambling to make ends meet or juggling which bills to pay and which to put off, saving for a down payment can feel impossible. Even though bankruptcy could help address that type of debt, many people in Connecticut still do not take advantage of the process. This is partly due to the fear that bankruptcy will prevent them from buying a house in the future.
You might be making what others describe as a living wage, but that does not mean you are not struggling. Many people in Connecticut who earn living and middle-class wages are faced with more debt than they know how to handle. Sometimes, it is through the slow accumulation of smaller debts that are hard to notice until things have piled up. In other cases, a single financial disaster can throw people into a difficult situation. Either way, filing for Chapter 13 bankruptcy could help you deal with your debt.