In a Nutshell

TurboDebt's tailored programs help Connecticut residents become debt-free in the shortest amount of time possible. Whether you’re struggling with mortgage and automobile loans or dealing with mounting credit card debt, medical debt, payday loans, or other unsecured debts, we can help you break free from the cycle of debt.

Read on to learn more about debt relief options in Connecticut, the state's financial statistics, and key financial hardship resources.

Connecticut: The State and Its Economics

Connecticut recently ranked 35th in the United States based on its economic outlook and competitiveness. Yet, The Constitution State enjoys an average personal income above $80,000, the highest in the nation. While Bridgeport is home to its main population center, the state’s capital is Hartford.

However, Connecticut is not a right-to-work state, and has had a fairly low adjusted unemployment rate. Additionally, Connecticut residents currently enjoy a relatively high average credit score above 700, putting them firmly in the “good” category for FICO ratings.

How Does Debt Relief Work in Connecticut?

Debt relief comes in many forms and relieves a person of debt by fully or partially reducing the amount of money owed to various lenders. As debt management becomes a larger and larger issue for many of its citizens, Connecticut residents can access several beneficial programs offering help to individuals struggling with credit card debt, medical bills, mortgage repayments, payday loans, and other unsecured debts.

Given the many programs and methods from which to choose, deciding on the right debt relief option for Connecticut residents requires personalized research. Fortunately, TurboDebt is here to help get you started with a free consultation and introduction to our comprehensive program.

Connecticut’s Debt and Finance Statistics

The following statistics provide a better snapshot of Connecticut's key financial information:

Average Consumer Debt

Average consumer debt combines the total from auto loans, student loans, mortgages, and the amount owed on credit cards. Connecticut residents carry an average of $107,301 in overall consumer debts.

Credit Card Debt

Residents of Connecticut carry the highest credit card debt in the nation, with an average of $9,408 owed to credit card companies. Those living in Connecticut may hold multiple credit card accounts, making them more likely to accrue substantial unsecured credit card debt.

Auto Loan Debt

Connecticut drivers had an average auto loan debt of $17,115 in 2022. This was below the national average of $20,987.

Mortgage Debt

Connecticut’s real estate market has had its struggles in recent years. Even still, the median-priced home in the Constitution State went for a respectable $258,000 as far back as 2018. That figure continued to climb with the rest of the nation’s prices during the pandemic and subsequent supply chain issues. As a result, Connecticut residents grew their mortgage balances to an average amount of $242,139 in 2022.

Student Loan Debt

Connecticut graduates carry an average student debt of $35,455. While Connecticut colleges may be some of the greatest in the nation, so is the debt that comes with attending these fine institutions.

Household Debt

Mortgages, personal loans, vehicle loans, school loans, credit card balances, and overdrafts on bank accounts are all examples of household or consumer debt. Household debt is usually classified into two types: secured and unsecured debt. Connecticut ranks as one of the top 10 states with the highest amount of household debt per capita at $64,670. 

Bankruptcy

In 2022, the American Bankruptcy Institute reported a total of 2,512 filings for bankruptcy across Connecticut. 1,942 of those were for Chapter 7, 22 were for Chapter 11, and Chapter 13 filings numbered 548.

Average Income and Employment

Connecticut's median household income is $83,572, according to the latest U.S. Census. 

As of September 2023, Connecticut’s unemployment rate was 3.5% and trending downward from the previous year. 

Credit Scores

Connecticut residents have an average credit score of 725. This amount puts many Connecticut residents firmly in the “good” category of credit score ratings, making it easier to access loans at lower interest rates.

Identity Theft

Citizens from Connecticut reported 8,129 identity theft complaints in 2022. Thankfully, this puts residents at a lower risk than many other states, ranking them 26th for identity theft incidents. 

Banking and Tax Info

Connecticut residents pay a graduated state income tax rate, ranging from 3% to 6.99%, depending on their level of Taxable Income. Connecticut has a flat 7.5% corporate income tax rate at the state level. The state also has a 6.35% statewide sales tax but no other local sales taxes. Drivers pay an extra 35 cents per gallon at the pumps, while property taxes currently sit at 1.79% of a property’s assessed value.

In 2021, 4.4% of Connecticut’s population was considered “unbanked,” meaning this portion of consumers does not have a deposit account or lending relationship with at least one bank or credit union. Interestingly this number is a 4% decrease from 2019.

Top Types of Debt To Get Relief from in Connecticut

If you’re a Connecticut resident looking for debt relief, several options listed below can work as effective tools for tackling debt. Each method varies in terms of how long it will take you to pay off or reduce your debt, and one may be better suited to addressing your unique financial situation. Read on to learn more, and reach out for a free consultation to get started with TurboDebt.

Credit Card Debt

Credit card debt relief is just one service that TurboDebt offers to all Connecticut residents. Unfortunately, credit card debt is one of the most prominent types of debt Americans face, with the total debt in 2023 reaching over $1 trillion. Credit card debt is also the number one type of debt that we enroll in our program.

If you’re located in Connecticut and are finding it increasingly harder to pay off a credit card, then it’s time for a free consultation with one of our amazing team members who will help you move toward debt-free living once more.

Divorce Debt

Some divorces arise from finances and financial stress. Add to that the immense costs of getting a divorce that often worsens an individual’s financial situation further.

Seeking a divorce can cost each partner an average of $12,000 but can get as high as $100,000 in more complex situations.

TurboDebt offers Connecticut debt relief programs designed to help people going through a divorce. We understand that divorce is a very stressful time for a couple, but we’re here to help with the financial aspects of the outcome once it’s finalized.

Business Debt

In the U.S., 70% of businesses carry debt, many at an unhealthy level. If your debt exceeds 30% of your capital, it’s a good idea to pursue debt relief options. 

When business debt outpaces income, you lose your ability to make a profit and may find it harder to secure funding. Business owners in Connecticut can access TurboDebt’s programs to help lower their amount owed to lenders and pay it back in a more manageable schedule or payment amount.

Medical Debt

It is estimated that about 20% of Americans have some form of healthcare debt. So there’s a reason why we constantly hear about the cost of medical bills and insurance seemingly always going up.

Settling medical debt can help ease the burden of these unsecured debts. TurboDebt provides Connecticut residents with medical debt relief programs for a fresh start.

Homeowner Debt

Long after the Financial Crisis of 2008, mortgage debt continues to cripple the financial well-being of many Americans, as it remains the largest type of debt we face. Americans' average mortgage debt is $220,380, which continues to rise yearly, along with the cost of purchasing a new home.

At TurboDebt, we connect Connecticut homeowners with debt relief programs for residents with mortgages or other home-related debts.

Retirement Debt

Unfortunately, more and more Americans are retiring with little to no savings to fall back on in their golden years. In a survey conducted in early 2023, some 37% of new retirees reported having nothing in their bank savings or retirement accounts. This means their debts and high monthly payments can follow them into retirement, where they have only Social Security and possibly a modest company pension to support themselves. Both of these options only offer small, if any, annual increases for inflation in the cost of living.

TurboDebt can help those no longer working become debt-free and live out their remaining years free from overwhelming debts.

Options for Debt Relief in Connecticut

The best debt relief options in Connecticut effectively lower payment amounts, interest rates, or a combination of the two. Different options will suit you better depending on how aggressive you are at paying off your debt. You can learn more about the top ways to get relief below.

Debt Management Programs

A debt management plan will offer varying strategies to pay off debt, depending on the one you choose. In general, the most effective way this form of debt relief works is when it combines all existing debts into a single monthly repayment plan at a lower interest rate, usually down to about 10%-12% APR. This is a great solution for Connecticut residents who have a steady income that’s reliable enough to make monthly payments over three to five years (on average).

Creating a payment plan similar to this that works within a person’s income and other financial obligations can assist those in need of help with managing and budgeting.

For example: If your combined debt to credit card companies is $15,000, and you spread repayments over five years, that’s 60 monthly payments in total. Therefore, each of the 60 repayments would be $250.00 before interest. You may, of course, negotiate a lower interest rate with each of your lenders.

You can also determine your monthly payments on other debts with negotiated lower interest rates using one of our loan payment calculators.

Debt Consolidation Loans

Sometimes, in more serious situations and in place of a monthly payment plan, debt consolidation loans can be used to combine all of your high-interest debts into one single monthly payment with a lower interest rate that may be more manageable. By taking out one loan to pay off all outstanding loans, a person repays over a period of time, with just one payment to one lender the whole time. 

It is worth remembering, though, that debt consolidation lenders like to offer an initial low-interest rate for 12-24 months as a “teaser rate” but will then revert the APR back to the standard high-interest rate over the remainder of the repayment schedule. It is always best to read the fine print in any debt consolidation loan offer you may receive.

Debt Settlement

Debt settlement may occur when a borrower negotiates with a creditor or debt collector to repay a smaller, agreed-upon amount and have the rest forgiven.

This option typically requires either a large sum initially or the ability to commit to funding a savings account over the next several months, up to a certain dollar amount, which will then be used to pay off your negotiated balance(s) in full once you’ve saved enough.

In return for negotiating a reduced payoff amount with your creditors and administering the savings account you will use to pay them, debt settlement companies often ask for 15-25% of the newly negotiated balance once the debt is settled. So, if your remaining balance on a loan is $10,000, and the debt settlement program’s fee is 22%, you would have to pay $2,200 in fees for this service.  

It’s important to note here that debt settlement firms can’t legally charge the consumer any upfront fees before they do any work for you. In addition, they can only charge fees based on: 1) the newly-settled debt amounts; or 2) the amount of debt they saved or had reduced for you–not the original debt amount.  The reason why a debt settlement firm can’t charge you upfront is that working with a debt settlement firm will not guarantee that any or all of your debts will be settled, but if they can, you should only pay a settlement negotiator after they have shown you results.

Credit Counseling

Credit counseling, like those typically offered by nonprofit organizations, involves regularly meeting with a credit counseling agency to develop an individual plan to become debt-free.

This will involve working with real people or credit counselors who are certified and trained in consumer credit counseling, budgeting, and debt management. These credit counselors provide advice on creating a household or small business budget so a person can pay off their debts. Counselors also offer financial education free of charge and can help people obtain free copies of their credit reports and scores.

Bankruptcy

A bankruptcy filing is considered a longer-term and more permanent form of debt relief. When someone can no longer pay off debts with their own money or income, they may choose to liquidate assets and create a repayment plan if any debt remains.

A person or business must file a petition with a bankruptcy court, as all bankruptcy cases proceed in a federal court as outlined in the United States Bankruptcy Code.

Different types of bankruptcy filings apply to individuals, families, businesses, cities, etc. For example, individuals may file for Chapter 7 or Chapter 13 bankruptcy, while businesses can file for Chapter 7 bankruptcy in order to liquidate assets or file for Chapter 11 to reorganize them.

Debt Forgiveness

Debt forgiveness can occur when a lender “forgives” all or some of a person’s debt with them in return for service in a particular employment role that might qualify them for relief from certain types of student loans or other qualifying debt.

Many types of debt can be forgiven, including student loans, medical debts, credit card debts, mortgage debts, and taxes owed at the state or federal gov level. Typically, borrowers must meet certain criteria for debt forgiveness programs to receive debt forgiveness.

Finding the Right Connecticut Debt Relief Solution

Debt expert and managing director of Reichert Asset Management LLC, Brad Reichert, offers advice to consumers looking for assistance in managing their debts. “It’s always best to know your consumer rights before talking to a debt relief company,” Reichert says. “A debt settlement firm’s website should clearly lay out its fee structure, telling you when and exactly how much you will pay for their services, so there are no surprises,” explains Reichert. 

Reichert encourages consumers to carefully look over their contracts before signing up. “Once you thoroughly review and sign a contract, you should be charged the same percentage amount for each debt it settles on your behalf, regardless of the balance type or amount,” Reichert shares. “A legitimate company will always walk you through the process step-by-step,” he says. 

Debt and Financial Hardship Resources

Temporary Assistance Programs

In Connecticut, the Temporary Assistance for Needy Families (TANF) also funds the Safety Net, Employment Services, and many other financial assistance programs and services that low-income families may require.

State Health and Human Services

Connecticut’s Health and Human Services offer a variety of programs and services for those in need of financial assistance for their health.

The Supplemental Nutrition Assistance Program (SNAP), formerly “Food Stamps,” helps eligible people and families afford food.

HUSKY Health (Medicaid and Children's Health Insurance Program) provides children, parents, caregivers, the elderly, people with disabilities, adults without dependent children, and pregnant women with affordable healthcare solutions.

Child Care

Care 4 Kids is a very helpful initiative from the state government that helps low-to-moderate-income families in Connecticut pay for their childcare costs.

Shelters for the Homeless

Information on housing and homeless services can be accessed through the Coordinated Access Networks (CAN). This is a network of community providers all over Connecticut who work with caseworkers and individuals facing homelessness.

Free Transportation Services

Medicaid Non-Emergency Medical Transportation (NEMT) is a benefit Medicaid members are entitled to if they need to get to and from any Medicaid-covered medical service or appointment but do not have personal transportation available.

Stimulus Checks

Get the most recent updates about Connecticut stimulus check here.

TurboDebt Helps Connecticut Residents Whenever Debt Becomes Overwhelming

If you live in Connecticut and need assistance with debts that are becoming unmanageable or want a free consultation about how much you currently owe, call TurboDebt today. We've helped thousands of residents across the country and look forward to assisting CT residents get out of debt and achieve financial independence.

How TurboDebt helped Connecticut residents in 2023

Check out our 10,000+ positive TurboDebt reviews on trusted sites like Google and Trustpilot to find out how our debt relief program helped consumers like you. 

Remember, we’re just a phone call away for a free debt consultation. Start your journey toward debt freedom today!