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.
Earlier this month we wrote a blog post regarding a student loan debt relief program that might enable some loan holders to effectively restructure their payments. That particular relief idea is generally aimed at recent college graduates who have not yet had the chance to establish themselves in their careers.
According to information provided by the National Center for Education Statistics website, during the decades 2001–02 and 2011–12, the cost of attending public institutions, including undergraduate tuition, and room and board, rose 40 percent. Prices at private nonprofit institutions also increased, though not as dramatically, by an estimated 28 percent. What this has meant for the average New Jersey college student is in an increase in the amount of student loan debt with which one graduates.
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.
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.
Even as bankruptcy filings are decreasing across the country, a new surge in filings may be just around the corner here in New Jersey. As baby boomers reach retirement age without sufficient funds to support themselves, filing for bankruptcy may become necessary.
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.