New Jersey consumers carry an average debt of more than $62,000 each, an amount that is about $15,000 higher than the national average. Their per capita credit card debt is the second highest in the nation.
With such high levels of consumer debt, it is no wonder that many people need to find ways to reduce their credit card payments and balances in order to find relief. There are several methods for reducing credit card debts which people can consider. First, if possible, the best way for people to improve their financial situations is to pay off all of their credit card debt in one payment. Not every credit card holder is able to do this, of course. A second approach is attacking the credit card debt from the top down. In this method, people pay off the credit card with the highest interest rate, then moving to the next-highest and so on until all are paid in full.
Of course, simply making certain to pay on time each month will avoid accruing late fees. For people who are responsible enough, paying off credit cards with a home equity loan may be a good option, as those loans often have interest rates much lower than credit cards. Finally, some people are able to transfer credit card debt from higher interest cards to lower interest ones.
No matter what consumers choose to do, paying off credit card debt is an important step towards financial freedom. If the consumer debt amounts are simply insurmountable, debtors may wish to consider bankruptcy in order to obtain relief from credit cards and other types of debt.Source: Debt.org, “Consumer debt in New Jersey“, Bill Fay.
Source: MainStreet, “5 Tips to Cutting Your Credit Card Bills as Consumer Debt Jumps“, Brian O’Connell, October 03, 2014