Getting Out of Debt: New Jersey Debt Relief
14 MIN READ
Published March 30, 2023 | Updated September 11, 2023
In a Nutshell
If you have unsecured debt in New Jersey, you can recover from your financial hardships. The average amount of debt owed to credit card companies in New Jersey tops $6,000, the third highest in the U.S.
If you’re ready to start your journey toward financial freedom, you’ve come to the right place. Enlisting TurboDebt’s help allows you to tackle credit card debt and other unsecured debts instead of living under the weight of staggering balances.
In this article, we’ll share statistics about debt in New Jersey and provide key resources and information about how to find debt relief in NJ.
We’re Here to Help New Jerseyans Escape Debt
TurboDebt knows that getting rid of debt can be taxing, especially if you have a lot of other bills to pay. However, if you’re committed to following a strict regimen, you’ll be on your way to escaping the cycle of debt.
Read on to learn more about the types of debt relief solutions New Jersey residents can access.
Debt and Finance Statistics in New Jersey
Average Consumer Debt
New Jerseyans carry over $100,000 in average consumer debt. This includes balances from mortgages, auto loans, student loan debt, and credit cards. Because a collection agency will charge you fees for debt collection, getting out of unsecured debt as quickly as possible is ideal. Secured debt like mortgages and auto loans can also strain your finances if you can’t make payments and struggle to make ends meet.
Credit Card Debt
If you’ve built up a lot of credit card debt over the years, you're not alone. Americans now carry $986 billion in credit card debt. Credit cards let people spend more than they make, whether it’s a wise choice or not. Many people don’t have an emergency fund, meaning their credit cards are the only way to cover an emergency.
The average New Jersey resident carries $6,428 in credit card debt. It takes work to figure out how to quickly pay off credit card bills after the debt has accumulated.
With TurboDebt, you can work toward achieving freedom from credit card debt, avoiding debt collectors, and rebuilding your savings.
Auto Loan Debt
Auto loans are personal loans you take to purchase a car when you don’t have enough money to buy the car in full. You might get a loan to get a new or used car, but in New Jersey, the average amount of money owed on auto loans was $17,309 in 2021. This number has increased by 7.4% from the previous year.
If you have higher credit scores, you’ll typically pay a lower interest rate than you would with a lower credit score, so it’s a good idea to strengthen your credit before you try to get a car loan.
Americans who purchase homes make a financial commitment that can often lead to debt. In New Jersey, the average home cost is around $451,559, substantially higher than the national average.
New Jersey residents carried an average mortgage debt of $280,711 at the end of 2021.
Student Loan Debt
With so many students graduating college with high amounts of debt, it can be hard to get a good financial start. The average federal student loan debt for individuals in New Jersey is $35,794.
When many Americans reach a point where they don’t think they can escape their debt, they opt for bankruptcy—usually Chapter 7 or Chapter 13. In New Jersey, 10,661 people filed for bankruptcy in 2022.
Average Income and Employment
In New Jersey, the median household income is currently $89,703. In terms of the average individual income (per capita), residents earn $46,691.
New Jersey’s unemployment held steady at 3.7% in June of 2023, a slight increase from the end of 2022.
A high credit score and positive credit report can help you achieve financial freedom. In New Jersey, the average credit score was 724 in 2022. This is a strong score, higher than the national average of 714, indicating that many residents of The Garden State can find loan and credit opportunities with better interest rates.
Unfortunately, more and more people fall victim to identity fraud as digital technology advances. There were 28,712 identity theft cases reported in New Jersey in 2022. When you consider the population of New Jersey, the state is ranked 13th for the most identity theft incidents per resident.
Banking and Tax Info
New Jersey residents are taxed between 1.4% and 10.75% based on income, with a sales tax of 6.625%.
TurboDebt Can Help You Find Debt Relief in NJ
As we’ve seen from recent statistics, a lot of New Jersey residents carry debt. If you’re ready to escape your outstanding balances, late fees, or high interest rates, check out some of our debt relief options.
In 2022, TurboDebt helped 3,698 residents from New Jersey, with 1206 clients enrolled in our debt relief programs. Each client's average debt was $24,143, with a total debt of $29,128,507 enrolled in TurboDebt’s programs. On average, New Jersey residents saved 53.27% on their debts before fees.
If you’re ready to find debt relief, TurboDebt has helped thousands of New Jersey residents get a new financial start.
Top Types of Debt to get Relief from in New Jersey
Credit Card Debt
Living in New Jersey is quite expensive, at 10.6% more than the national average. As costs for rent, food, transit, and utilities increase, more Garden State residents are forced to charge essential items to their credit cards.
As noted above, the average New Jersey resident carries over $6,000 in credit card debt. Residents of New Jersey struggling with credit card balances can choose from many ways to get out of debt.
If you’re trying to pay off your credit card debt, you can seek help from banks, credit unions, online lenders, non-profit and for-profit credit counseling agencies, and debt settlement companies. Debt management programs, debt consolidation loans, debt settlement, nonprofit debt settlement, and bankruptcy are all options to address major credit card debt.
Divorces are hard enough but are even more challenging when debt is involved. In fact, when debts are held in both spouses' names, debt collectors may pursue both parties for the balance, even if the court ordered one spouse to pay the entire amount.
TurboDebt wants to ensure that divorce doesn’t ruin your financial future, so let our expert team help you manage the debts you’ve collected from a divorce.
When you decide to start your own business, it can be risky, especially if you have to go into debt. The average small business carries $195,000 in debt.
With the help of TurboDebt, business owners from New Jersey can begin to rebuild after going into extreme debt to start their careers. Start a free consultation to learn more about how our team can help you eliminate your business debts.
With varied insurance costs and rising fees for medical care, an estimated 20% of Americans carry medical debt. Accrued bills for medical procedures, screenings, and treatments can make it hard to get past compounding balances.
If healthcare bills are a concern, TurboDebt can help. We’re committed to assisting New Jerseyans in eliminating their medical debt so they can get back to building their wealth.
Although taking out a mortgage can be a worthwhile debt, it can also lead to financial strain. The threat of foreclosure from missed payments can lead you to debt in other areas as you struggle to maintain your dwelling.
Talk to the professionals at TurboDebt to figure out how to reduce your homeowner debt. We want to help you save and eliminate outstanding debts from your living expenses.
In America, many people retire with debt. On top of that, the cost of a comfortable retirement continues to rise, making it difficult to avoid debt on a fixed income. WalletHub ranked New Jersey as one of the least favorable states to retire in on their 2023 list. The high cost of living and taxes in The Garden State can make debt-free living difficult for any retiree.
To avoid overwhelming debts during your retirement, TurboDebt can help. Our experts assist in finding the best solution to your outstanding balances, even on a fixed income.
Options for Debt Relief in New Jersey
Debt Management Programs
Debt management programs help you find a more reasonable monthly payment plan to eliminate outstanding balances. This debt relief option focuses on helping you avoid missed or late payments by renegotiating interest rates or fees associated with your accounts. You'll often create a debt management plan and work through a credit counseling agency to pay off your debts under this solution.
Credit counseling can be an excellent way to gain a deeper understanding of how to pay off debts and manage your finances. When you work with a credit counselor at a credit counseling agency, you’ll get one-on-one advice to help you figure out how to get out of debt. You’ll find both private and nonprofit credit counselors.
Debt Consolidation Loans
Paying various debts each month can also mean more interest payments at high rates. Debt consolidation loans help you only by setting up only one payment a month. You can do this by taking out a personal loan to pay off the total amount of your debts, then continuing to pay on a single outstanding balance.
If you have at least a “good” credit rating, you can typically negotiate a lower interest rate for the personal loan, making it more cost-effective. Paying towards only one debt that accrues interest can also make it easier to achieve your financial goals.
Using a debt settlement company allows you to pay off your debts at a lower price. Debt settlement companies accomplish this by negotiating with your creditors to eliminate part of your debt by offering creditors a fixed amount towards the total.
For example, if you have $10,000 in debt, the settlement agency can talk to your lender and negotiate a partial repayment of your total debt. They may agree to a settlement of $5,000, cutting your debt in half. To do this, you’ll typically set up an account with the agency and start paying toward the settlement. The debt settlement company will then manage your monthly payments to the creditor, charging a fee or percentage of your payment for administering the account.
Bankruptcy is a court-ordered agreement to pay off or eliminate your debts. Most individuals file for Chapter 7 or Chapter 13 bankruptcy. In Chapter 7 bankruptcy, the court can liquidate or sell off your assets to pay back creditors. Chapter 13 outlines a structured payment plan, helping you alleviate debt without liquidating your property.
Pursuing this type of debt relief can give you a fresh start. However, it's best to seek legal advice before choosing this option. You'll also need to pay fees for bankruptcy and legal representation.
When you opt for debt forgiveness, that means that your debts are being forgiven entirely, and you don’t have to have a repayment plan. This type of debt relief is uncommon and mostly offered through government agencies.
For example, the federal government offers student loan forgiveness for some Americans based on their profession. The Department of Housing and Urban Development also offers mortgage forgiveness for qualifying low-income families.
Debt and Financial Hardship Resources
If you need immediate help securing cash funds, contact the Temporary Assistance for Needy Families program in New Jersey.
State Health and Human Services
New Jersey offers residents reduced healthcare services through Medicaid, Medicare, or GetCoveredNJ.
If you’re a working parent, finding daycare for your kids is important. If you need help, New Jersey’s Child Care Assistance Program could help you afford daycare.
Shelters for the Homeless
There are a lot of homeless shelters in New Jersey, including St. Lucy’s Emergency Shelter, Newark Homeless Shelter, and Cornerstone House. All of these places take in people who are experiencing housing instability.
Free Transportation Services
If you're facing financial hardship and don't have the ability to drive a vehicle, it's important to get to work or doctor’s appointments. If you need accessible transportation services, try using the New Jersey Transit Access Link.
Let TurboDebt Help You Find Debt Relief in NJ
It’s easy to get overwhelmed by your debt. But, when you work with the team of professionals at TurboDebt, you’re on your way to retaking your financial freedom.
Don’t let scammers take advantage of you. Go with a trusted organization like TurboDebt. With thousands of positive reviews, we can honestly say we’ve helped others like you overcome debt.
Don’t wait to be debt free any longer. Contact TurboDebt to start your path toward financial freedom. We offer free debt consultations, so reach out now!