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.
The effects of low consumer spending have hit several retail businesses hard. People are seemingly visiting malls less, as hard economic times lead to more cautious spending. In this type of climate, consumers and businesses are all dealing with financial strain, and many people are considering filing for bankruptcy.
In today’s economy, with high unemployment rates and other financial challenges, it is not unusual to fall behind on bill payments. In such cases, debt collectors will be calling, but they are only allowed to use limited means to collect a debt. If they go beyond these limits, they may be in violation of federal law.
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 mortgage is considered underwater if the homeowner owes more on the mortgage than the assessed value of the property, also referred to as negative home equity. In both Newark and Elizabeth, New Jersey, more than half of all homes are underwater, with Paterson just behind at 49 percent.
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.
The beginning of 2014 saw a rise in a specific type of foreclosure, according to housing data website RealtyTrac. Distressed homeowners in the process of foreclosure have decided to simply abandon their homes avoiding the traditional foreclosure process altogether. These “zombie foreclosures” actually end up stalling the typical foreclosure process completely and are becoming a burden on the overall housing market in New Jersey.
So what’s a young person to do? Go to college, get a degree, get a better job, but be forever saddled by student loan debt? Or enter the working world without a degree but without student loan debt? Seems like a catch-22. But the decision is actually even more complicated by the fact that women throughout the country, including in New Jersey, generally earn less than men in the workforce, regardless of the extent of their education. So is the debt from student loans worth it? And if it is, what debt relief is available to help female graduates manage their entire debt load?
A lot of people go through financial challenges at one point or another. The situation can seem hopeless when faced with crippling debt. The ominous prospect of losing everything is never far from your mind. You do not have to lose your dignity to creditors though. Bankruptcy provides a vital lifeline for many struggling Americans. It is a way of discharging debt or coming up with a repayment plan so you can pay it back over a convenient period. Well-known singer Dionne Warwick was recently saved from the wrath of the taxman by the bankruptcy court.
New Jersey residents have the second highest rate of foreclosure in the country. However, people who have been struggling with financial challenges and might be facing foreclosure may receive some help from a recently proposed bill, according to a news report.