As one of the wealthiest states in America, Connecticut also holds the title of beings the third highest ranked for credit card debt. The average per household is $7,730. The median household income for Connecticut is $64,032, making it the fourth highest earning state in the U.S. The average credit ratings aren’t too bad either, at 672 – the ninth highest in the country. Overall, the cost of living in Connecticut is pretty high, being that it is the fourth highest in the nation. Residents of Connecticut tend to spend more than people who live in other states, which is why they may have one of the highest ranked credit card debts in America.
Debt Laws Affecting Connecticut
Like with other states in the U.S., Connecticut debtors are protected by laws under the Fair Debt Collection Practices Act, or FDCPA. For instance, collectors are not allowed to charge over 8% for interest rates and no creditor is allowed to use any harassing, abusive, misleading representation, fraudulent practices or devices in order to obtain debts owed. There is also a wage protection set, which covers 75% of weekly net income, or 40 multiplied by the state or federal minimum wage rate, whichever is higher.
There is also a statute of limitations that protects debtors. This was set in motion in order to limit the amount of time a creditor or collector can attempt to initiate legal proceedings after a debtor becomes delinquent. Here is a list of limitations for various creditor/debtor agreements:
- Six years for oral agreements
- Six years for written contracts
- Six years for promissory notes
- Six years for open accounts (credit cards)
Debt Relief in Connecticut
Connecticut residents have a variety of debt relief options to choose from. There are multiple national debt relief companies in Connecticut that offer debt settlement and other types of debt relief services. Finding a reputable company is the key to getting the right help for your situation. Here’s a look into the types of Connect debt relief options that are available:
- Debt settlement is the process of using a negotiator to lower your overall debt balance owed to a collector or creditor. This enables you to get rid of debt one by one, by paying them off in full, at a more affordable price.
- Debt management is a form of counsel that is used to teach debtors about finances and staying out of debt. Debt managers also help with negotiating a lower balance and/or monthly payments. They also make the payments for you from your bank account, so that you don’t forget.
- Debt consolidation loans are a great option for debtors who are struggling with debt. This type of loan is used to consolidate all of your debts and pay them all of at once. Then you have to worry about paying this one debt off.
Make sure that the debt relief option that you use it provided by a company that is licensed by the state of Connecticut to avoid being scammed.