Americans often rely on using credit to make both necessary and luxury purchases. Unfortunately, this consumer culture has led to a great deal of credit card debt in the country. The inability to pay bills on time, and making only minimum payments, could result in interest atop mounting expenses, and a vicious cycle of continuously owing money.
Many New Jersey residents and other Americans spend money beyond their means by using credit cards, but a recent survey conducted by Gallup proved that this notion might be changing.
A clause in the private student loan agreements for students in New Jersey and around the country helps to spur the debt burden facing recent graduates. Borrowers who used a parent or other relative to co-sign have recently been forced to pay the entire loan balance right away if that relative passes away. Many borrowers simply do not realize that these clauses exist when they sign the regular agreement, but a family member passing away can leave students few other choices than to accrue credit card debt.
With the uncertainty that many people are facing in the current economy, many able and willing workers in New Jersey are struggling to find full-time employment. Even when a worker is laid off and left unemployed, the worker still has to continue paying for expenses like food, housing, utilities, credit card bills, student loans and other expenditures.
Being in over your head with credit card debt can feel embarrassing and overwhelming, which is why many people stay in a state of denial. They may push financial worries out of their minds while continuing to spend money they don't have. These individuals may even find themselves lying to friends or loved ones because they don't want to face the reality of their financial situation.
If you are lucky, you have never had to tap into an emergency money fund. If you are smart, however, you have an emergency fund.
A recently conducted survey shows that the average amount of credit card debt most households carry is down from $9,887 five years ago, to $7,145 at present. However, many households still rely on credit cards to pick up basic living expenses to cover rent, bills, groceries, utilities and more.