Downward trends in the economy will have devastating effect on families, homeowners, business owners and the community. When New Jersey citizens are unemployed, they also tend to accumulate personal debt. When they have too much personal debt, they cannot afford their house and other monthly payments and will tend to default on loans. It’s either this or they seek options such as bankruptcy relief.
In today’s economic times, it probably will not surprise anyone that a study found New Jersey residents worse off at the end of the decade than they were at the beginning. This study shows:
- New Jersey unemployment is now at 9.5 percent when it was 3.7 percent back in 2000.
- New Jersey’s credit rating was lowered in the studies of three credit rating companies.
- Though median income in New Jersey is little changed, people living in poverty is now at 10.3 percent compared to 7.8 percent in 2000.
When individuals have no recourse to decrease or rid themselves of their debt, they will also be unable to shop and local stores and invest more money into the community. Likewise, when the credit rating for a state like New Jersey is lowered, the safety net cast for citizens in financial trouble is much smaller. This leads to more individuals being in poverty.
Unfortunately, this situation is unlikely to change until we get beyond today’s economic downturn. Often such individuals can find no relief whatsoever without the advice and assistance of legal counsel that understands debt relief, foreclosures, debt management and other debt relief options. Other options could include filing of Chapter 7 or Chapter 13 Bankruptcy
Source: Bloomberg Businessweek, “New Jersey Worse Off at End of Decade Than Start, Study Finds,” by Elise Young, Nov. 3, 2011