The financial ramifications of the recent recession could be felt for years by many New Jersey residents that are either approaching or over the age of 50. Many people lost their savings and retirement accounts, lost their homes and/or incurred a great deal of debt in order to survive. As a result, some individuals filed for bankruptcy protection or otherwise started over financially.
It can be difficult for New Jersey consumers to sort through all of the advice concerning the quickest and most efficient method of paying off debt. Two of the most commonly used and discussed methods are the "debt snowball" and paying down high interest debt first. Either way, one goal of nearly every consumer struggling with debt is to either avoid or stop harassing phone calls from creditors.
It may be no surprise to anyone in New Jersey that prior to the recession, Americans were addicted to credit. Credit card debt was out of control for many people, which is, at least in part, illustrated by the dramatic jump in the amount of people filing for bankruptcy during the recession. As the country emerges from the recession, data is showing that Americans have the lowest level of credit card debt in many years.
A significant number of New Jersey consumers have enough financial issues without having to deal with so-called phantom debt. As the name implies, this debt does not exist, yet companies are calling consumers and saying they are being sued and need to take action. The federal Fair Debt Collection Protection Act (FDCPA) provides that consumers can stop harassing phone calls from creditors looking to collect phantom debts, as well as real ones.