Connecticut’s government considers its own debt diet

On Behalf of | Mar 27, 2020 | Uncategorized

People aren’t the only legal entities that can end up in debt. Companies and corporations, even those that have been in business more than a century, can fall on crippling hard times. In fact, governments of states and countries can also end up in debt that can cost them and their citizens for generations.

Connecticut has been working through its own debt issues, preparing to borrow more than $1.5 billion to cover operating costs and a variety of other projects. The governor has attempted to lower this amount, saying the Constitution State needs to go on a “debt diet” that would take more than a third of the money out of this plan.

“It is time for effective governance of this great state and its finances, which will always be measured and balanced with making appropriate investments in Connecticut’s future,” said a spokesperson for the governor.

What does this mean for the average citizen in Hartford or New Haven? It depends. Times of lean spending by state governments may take away incentives, loans and programs that can help ordinary people and small businesses get out of debt or lower their liability. As a result, Connecticutians may see it get hard for people with lower incomes and higher debts.

People who need help dealing with personal debt can always call on an attorney. A lawyer may be more helpful with financial problems than it may first appear, as legal representation is a big plus when dealing with creditors or the court system. Advanced options like bankruptcy may also be easier with an attorney.