It is increasingly common for New Jersey adults, especially those in their 30s and 40s, to have large amounts of debt. According to the most recent Census Bureau data, people between the ages of 35 and 44 have the highest level of household debt compared to any other age group. Student loan and credit card debt are a huge source of payments for people in these age groups, and the average student loan balances for those between 30 and 39 approached $30,000 at the end of 2012.
People in these age groups will sometimes struggle with getting out of debt because this time of life is often one of the most expensive. Individuals are starting families, looking to buy their first homes and are not yet at the apex of their earning potential. However, those with large amounts of debt can still take control of it and should do so. Many financial experts recommend that people tackle credit card debt first.
Credit card debt often carries high interest rates with it, and revolving debt can also damage someone’s credit score. Once credit card debt is in hand, individuals should start focusing on student loan and home loan debt. While tackling debt is important, it is also essential for individuals to start saving for their future and putting money into retirement accounts. People should attempt to strike a balance between eliminating debt and saving money.
If someone has enormous amounts of debt, they may not realistically be able to pay it off. Individuals who are drowning in debt may file for bankruptcy and discharge most or all of what they owe. A lawyer could explain the process and help someone file for bankruptcy.
Source: Daily Finance, “4 Tips to Help 30-Somethings Manage Their Debt“, Dan Caplinger, August 13, 2013