Connecticut Debt Consolidation Savings Estimate

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Consumer Debt Facts in Connecticut

Connecticut Consumer Debt Accumulation

$260 dollars in debt in 2016

The average Connecticut resident accumulated $260 dollars in debt in 2016. There are options and special plans available to those in need of debt relief.

$4,580 dollars in debt since 2010

The average Connecticut resident accumulated over 7,000 in debt since 2010.

What are the Debt Consolidation Options available in Connecticut?

Facing Debt: You have options

If you've got some serious debt accumulating, it can be extremely daunting. When the bills keep piling up, and you might not know where to turn to for help. Maybe you've heard a bit about debt consolidation but aren't too sure on how it can help you climb your way out from the hole you're in.

Debt consolidation doesn't have to be scary, and there are many options which will help you get out of debt faster. Research all of your options and then pick the one that works best for you and your financial situation.

Secured Debt Consolidation Loans in Connecticut

Typically a secured debt consolidation loan allows you to lump most of your debt payments under a single bill at a lower rate than the individual rates you may have been getting. However, in order to secure a lower rate with a secured debt consolidation loan, you must have some type of asset to use as collateral, such as your home. More information on that can be found below.

How much of a loan you can get depends on the type of collateral you have and how much it's worth. These types of loans can also be repaid back over a long length of time, anywhere from 5 to 30 years, and they can often boost your credit rating if managed properly. Otherwise, you risk defaulting on the loan and losing the asset used as collateral.

Unsecured Debt Consolidation Loans in Connecticut

Much like a secured debt consolidation loan, an unsecured debt consolidation loan lets you combine your debt payments under one lump sum with one interest rate. However, unlike a secured debt consolidation loan, you're not required to have an asset or collateral to receive such a loan.

Because you aren't offering up any collateral for such a loan, it's a much riskier loan for debt consolidators, and your interest rate could be somewhat high. These loans are determined according to your credit history and score, and the upside to an unsecured debt consolidation loan is that you aren't in jeopardy of losing your asset should you default.

Using a Home Equity Loan as Debt Consolidation in CT

A home equity loan lets you borrow money, using your home as collateral. This home equity loan is essentially a second mortgage that allows you to turn the equity on your home (the money your property is worth minus the amount you owe on it) into cash to be used at your discretion, such as debt consolidation. These loans are set up to be repaid quicker than your mortgage in equal payments with a fixed interest rate.

Home equity loans are secured loans which have the same risks and rewards already mentioned.

There are also programs which permit you to consolidate all of your credit card debt into one single payment (and interest rate). If you've got good credit, you could also be able to negotiate a lower interest rate on your credit cards, making it easier to repay.

Another option is to qualify for a new credit card at a low introductory interest rate (possibly as low as 0%) and transfer your credit card balance to your new card. While you're in your interest free rate, you should pay double payments in order to pay off your debt faster. But understand that the interest may very well be fairly high after the promotional period. Consider this way of consolidating debt only if you know you can pay off the debt while the introductory rate is in effect.

Another option with respect to debt consolidation is to enroll in a debt management program. A credit counseling agency will help you set up a debt management plan to help you pay off your debt as quickly as possible. This agency will also usually negotiate with your debtors so that they can reduce interest rates and fees.

Once the repayments are negotiated you will usually set up an account with the credit counseling agency and pay one lump sum a month into the account. The credit counseling agency will then disburse the payments out to each creditor. This benefits you because you only have to make one payment, and additionally it gives creditors more assurance that your payments will be made on time every month.

Credit counseling agencies can also help you develop a budget that's simple for you to follow and help alleviate some of the stress your debt has been causing you. If you stick to the plan a debt management program can help you save money, get rid of debt sooner and have a positive effect on your credit score.

Debt settlement is a strategy intended to pay off debts for less than you owe in a timeframe less than if you pay the debt in full. Debt Settlements are usually reserved for higher debt amounts of at least $10,000. Usually, the consumer enlists the help of a professional debt settlement company and/or lawfirm.

Those who choose to settle their debt can end up paying less than the full amount they owe. You will usually damage your credit in the short term, and there is a risk of litigration from creditors.

If you are serious about settling your debt, give us a call and we will see if you qualify.

Top Reasons for Debt in Connecticut

OverSpending

The single most common form of debt help that people seek is for credit cards that got out of control.

Income Ratios

How much do people in Connecticut make and spend? On average, people in Connecticut have spent $500 more than they make since 2010.

Job Loss

When unemployment in Connecticut rises, many consumers are left unable to pay their bills. Debt management options are available.

Medical Emergencies

Unexpected medical expenses happen. A simple treatment can be billed at outrageous rates. Many consumers prefer to settle their medical debt.

Annual Rankings of debt accumulation by county in Connecticut are in. We have analyzed the average consumer spending behavior across 8 counties in Connecticut. The average citizen in Connecticut is spending approximately $260 more dollars than they earned annually according to the latest data(2016).

Highest Debt Counties in Connecticut

  1. Windham County citizens accumulated $316 dollars in debt on average in 2016.
  2. New Haven County citizens accumulated $313 dollars in debt on average in 2016.
  3. Hartford County citizens accumulated $272 dollars in debt on average in 2016.

Lowest Debt Counties in Connecticut

  1. New London County citizens accumulated $215 dollars in debt on average in 2016.
  2. Fairfield County citizens accumulated $222 dollars in debt on average in 2016.
  3. Litchfield County citizens accumulated $241 dollars in debt on average in 2016.

0 counties in Connecticut accumulated $500+ in debt in 2016.

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Annual Rankings of debt accumulation by city in Connecticut are in. We have analyzed the average consumer spending behavior across 96 cities in Connecticut. The average citizen in Connecticut is spending approximately $298 more dollars than they earned annually according to the latest data(2016).

Highest Debt Cities in Connecticut

  1. Cannondale residents accumulated $1,218 dollars in debt on average in 2016.
  2. Willimantic residents accumulated $787 dollars in debt on average in 2016.
  3. East Brooklyn residents accumulated $696 dollars in debt on average in 2016.

Lowest Debt Cities in Connecticut

  1. Plainfield Village residents accumulated $40 dollars in debt on average in 2016.
  2. Conning Towers Nautilus Park residents accumulated $51 dollars in debt on average in 2016.
  3. Simsbury Center residents accumulated $70 dollars in debt on average in 2016.

Total Debt by City in Connecticut (FY 2016)

Debt Rank City Debt Accumulation Per Resident City Total Debt Accumulation
1 New Haven $606 $79.0 million
2 Hartford $571 $71.0 million
3 Bridgeport $433 $63.8 million
4 Waterbury $481 $52.6 million
5 New Britain $501 $36.5 million
6 Stamford $285 $36.4 million
7 West Haven $482 $26.5 million
8 Norwalk $233 $20.5 million
9 Meriden $314 $18.9 million
10 Danbury $218 $18.4 million
11 Bristol $269 $16.3 million
12 East Hartford $301 $15.3 million
13 Willimantic $787 $13.6 million
14 Middletown $274 $12.9 million
15 New London $463 $12.6 million
16 Norwich $307 $12.3 million
17 West Hartford $193 $12.2 million
18 Milford city (balance) $233 $12.1 million
19 Stratford $232 $12.1 million
20 Torrington $344 $12.1 million
21 Storrs $592 $9.5 million
22 Naugatuck $251 $7.9 million
23 Manchester $254 $7.7 million
24 East Haven $251 $7.3 million
25 Shelton $162 $6.6 million

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