Even though financial gurus have been assuring us that the worst of the financial crisis is over, foreclosures of family homes don’t seem to be slowing down. According to Realty Trac, more than 1.1 million homes in America are currently in some phase of the foreclosure process, and as we reported in a recent blog post, foreclosures in New Jersey are still on the rise.
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.
Despite the fact that recent health care regulations have provided health insurance to New Jersey residents and many others nationwide, medical debt is and will continue to be a big problem for American families. Sadly, it appears that medical debt is a rampant problem sweeping the country. Even one accident or unexpected diagnosis can deplete a family’s savings very quickly.
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.