New Jersey is a very urbanized state with most of its economy coming from the retail and wholesale sectors along with transportation and utility providers, but a large portion is also in the government, education and healthcare sectors according to the US Department of Labor. The overall annual median income of New Jersey residents is pretty high around $72,093 and there are a lot of high-paying jobs in places like Atlantic City and Newark. Yet due mostly to these high salaries, a lot of New Jersey residents carry significant debt on their credit cards and bank accounts. While having a good paying job can help manage debt, if you’re not careful you can find yourself in trouble.

When It’s Time To Consider Debt Consolidation

Debt consolidation is one method to address debt problems, and it should be pursued before you consider debt settlement or bankruptcy. If you find that your debt seems very large and you need to find a way to pay it off, a debt consolidation loan can help you pay it off. Ultimately it is not the loan itself that is the key to paying off debt but the plan you have to pay it back. Paying it back means changing spending habits that got you into debt in the first place and developing a budget to help you live within your means.

To get a good debt consolidation loan, you need to do your research on various lending institutions to find the right loan for you. You might get the best rate for a loan by going to your local bank or credit union, but sometimes getting approved even for a debt consolidation loan can be more of a hassle with them and you might have pages of paperwork to file and possibly weeks of waiting before you’re accepted. You might find better peer-to-peer lending options by going online and getting faster approval times with less paperwork and even potentially lower interest rates for a debt consolidation loan than a bank. But when looking for debt consolidation loan options online, make sure you’re not applying for a payday loan or a very high APR debt consolidation credit card. You also need to know whether the loan you’re applying for is a secured or unsecured loan, and be careful which assets you put up for collateral if you choose to apply for a secured debt consolidation loan. Never signoff on any loan without reading all the little print in the terms.

Other Options Besides A Loan

Debt Consolidation Loans in New JerseyThere may be times when your debt is just too large that a loan would take years to pay off and you can’t obtain a loan covering the amount of debt you owe due to bad credit scores or the refusal of the agency to lend you the funds. In that case you may have to negotiate some way to pay down your debts with your creditors themselves, including possibly partial forgiveness. If you need help making a payment plan for your debt, going to a New Jersey debt counseling center may be the first step to take. If you are having trouble reasoning with your creditors, it’s possible to find a debt management center that might be able to assist you in working with your creditors or possibly contact your creditors themselves. But if your debt is too large and no other solution can be reached, you may have to file for bankruptcy which may take some time to recover from, but in some cases it is the only choice.

An Attorney Could Help With Other Options Besides Bankruptcy

If you find yourself facing bankruptcy, you’ll likely need an attorney to help you through the process, and they will check to make sure you’ve pursued all other options before going through with bankruptcy filings. But an attorney could also assist you in dealing with your creditors if you believe they are using predatory collection tactics. Your creditors do have the right to call and ask for payment, but they cannot use certain communications such as threatening postcards in the mail, threatening to have you arrested or implying such action, or even telling you that they will use such actions that they actually were never planning to follow through with. According to the stipulations of the Fair Debt Collections Practices Act (FDCPA) as explained by the Consumer Financial Protection Bureau, any such actions by a creditor can be taken to court by you and they will owe you attorney fees and other damages. If you think you might have a chance to win a case against your creditors, make sure you keep records of all communications and share them only with your attorney.