New Jersey residents behind on their debts due to financial problems typically receive frequent calls from creditors. Collection calls for legitimate debts create plenty of stress and frustration, and consumers do what they can to stop harassing phone calls from creditors. Due to the volume of calls many consumers experience during unsettled financial times, it may be difficult to discern when the call is a scam.
Several settlements have been brokered with mortgage servicers over the last few years over questionable mortgage practices. Now, the fourth largest mortgage service in the country, Ocwen Financial Corporation and Ocwen Loan Servicing, the subsidiary of Ocwen Financial, has agreed to a $2.1 billion settlement. An estimated 1,900 New Jersey residents could receive a portion of the settlement and possibly stop foreclosure if they are in danger of losing their homes.
New Jersey drivers may not consider that owning and driving a car can influence their credit scores. Traffic tickets, car payments, drunk driving charges and accidents can all put a consumer into a financial bind. When the financial struggle becomes insurmountable, bankruptcy could provide much-needed relief.
The housing crisis may be over, but that has not stemmed the flow of foreclosures around the country and in New Jersey. Numerous homes are still not worth what their owners owe on them. An estimated 2.3 million homes are still in danger of foreclosure, and many of their owners may be contemplating bankruptcy protection in the aftermath of the recession.
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.
In many states, families whose home loans are being foreclosed are given an average of 30 days to vacate the home. However, as the people who live here already know, New Jersey is not like other states. In our state, when a homeowner is unable to stop foreclosure, they may get to stay in their home during the foreclosure process, which could take up to 1,000 days.
Many New Jersey residents would agree that health insurance is supposed to take care of most, if not all, of the insured's medical expenses. Even so, there are some instances where the patient's portion is still more than a person can afford. Even worse, there are times when an insurance company refuses to pay a claim for one reason or another. At that point, patients may need to look for debt relief options ranging from payment plans to bankruptcy.