With a decent estimated credit score of 684, and 11% declining credit, Connecticut looks to be livable. However, some of the residents feel otherwise owing to the high cost of living. This is why this state is having budgetary problems and many people are leaving this state – certainly highly successful people who create jobs. These accomplished professionals are leaving this state in a lurch.
Connecticut ranks 14 in credit card debt and has an estimated average debt of $6,939 per person. Though the cost of living is much higher in comparison to Colorado, the debt per person is clearly less.
Groceries, health care, housing, transportation, and utilities are all expensive, which creates a huge gap between income and expenditure. High taxes also do not give people the much-needed reprieve.
People may have to get new lines of credit just to be able to pay for basic needs and utilities like gas, heat, and electricity though this would be rare and extreme.
When this happens, payment becomes difficult, owing to different interest rates on different cards, and several payments that need to go out every month. Such scenarios may sometimes lead to a payment getting delayed, or missed, which can cause the credit score to dip, and a negative comment to appear on your credit report.
Personal Loans to Pay Off High-Interest Credit Cards
When you have debt on several credit cards with high-interest rates, it makes sense to pay them down quickly.
A personal loan may be a sagacious option, as these have a fixed term and fixed interest rate. The interest rate depends on your credit score. If a personal loan as low as $3,000 can save you from paying high interests or can prevent delinquency, it looks like a good option.
You can use the loan amount to pay down the debt on the high-interest credit cards. Do not close the cards after you have paid down the debt. While paying down the debt can improve your credit score, keeping the cards open can add to your positive credit history.
Paying off the Personal loan can always be discussed with your lender. Several lenders offer assistance to be able to set the amount and the term as per your convenience, which will help you save money in the long run.
Personal Loans for Home Improvement
You bought that dream home you wanted, but need money to get a few things fixed to make it livable. Personal loans can be a fantastic option for home improvement.
You can budget the amount required for your home improvement, and sign up for a personal loan accordingly, instead of depleting your line of credit.