How to Get Debt Relief in New Jersey

Sarah Edwards | August 24, 2023

Legal Expert
Sarah Edwards, BS

Sarah Harris is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: If you're struggling with debt in New Jersey, SoloSuit can help you find the relief you need.

Living in New Jersey is great—the beaches, the nightlife, the high median household income… And the high cost of living. Even a good salary can disappear quickly when you are struggling to pay down debt.

If you're constantly working and earning more money but still can't seem to save anything, you may be in danger of not being able to pay your bills on time.

Don't worry, though: Debt relief is available for those in New Jersey. If you're grappling with your finances or just feeling overwhelmed by your debts, professionals can help you choose a path forward.

There are many ways to get debt relief in New Jersey, from consolidation to negotiation to settlement. So if you're feeling stressed about your financial situation, don't hesitate to reach out for help.

What's debt relief, and how can it help me?

Debt relief is any solution that helps you reduce or eliminate your debt. There are multiple ways to get debt relief, and the right option for you will depend on your circumstances. In this article, we will discuss debt settlement, credit counseling, debt management, debt consolidation, and bankruptcy as options for debt relief in New Jersey.

Before we dive in, let's take a quick look at New Jersey's current state of debt.

Debt in New Jersey: the current outlook

In 2021, the average debt per person in New Jersey was $62,090, making it one of the highest averages in the United States.

However, keep in mind that the average can be misleading. While some people have much higher debt levels, many people have very little debt. So while the average debt level is high, it doesn't necessarily mean that everyone in New Jersey is struggling with their debts.

Credit card, mortgage, student and auto loans, and medical debt are the leading debt categories in New Jersey. If you're grappling with any of these types of debts, you're not alone. These are common debts that many Americans face.

The good news is that with a bit of effort and some help, you can get out of debt and get started on your path to financial freedom.

Debt settlement can be a great option for debt relief

Another option for those looking for debt relief is debt settlement. This involves working with a professional to negotiate with your creditors to lower the amount of money you owe.

If successful, this can be a helpful way to get out of debt, as you'll owe less money. However, you should remember that this option may not be able to eliminate all of your debt.

Debt Settlement Pros/Cons
Pros	Cons
You may end up paying significantly less than the original debt amount	The difference between the settlement amount and the total amount will be considered taxable income by the IRS. The difference is called “cancelled debt.”
Debt settlement companies take care of the work for you	A settled debt may remain on your credit report for up to seven years

This option is best for people struggling with a large amount of debt who are looking for a way to reduce what they owe. In fact, it's not uncommon to reach a settlement of 20%-60% of the original amount you owed. So, debt settlement can be a huge win for you.

Credit counseling can help you manage your debt

Credit counseling is a great solution for those who are struggling with credit card debt. It involves working with a professional to develop a plan to get out of debt.

Your adviser will work side by side with you to create a budget and help you make better financial decisions. This can be an extremely helpful solution for those struggling to make ends meet each month.

Credit Counseling Pros/Cons
Pros	Cons
It can be very helpful in getting out of debt	You may be unab le to eliminate all your debt
It can teach you how to manage your finances better	It could take a longer time to get out of debt

This option is best for those struggling with credit card debt and who need help developing a plan to get out of debt.

Debt management programs can work

Another awesome option for those struggling with credit card debt is enrolling in a debt management program.

The program will work with your creditors to lower your interest rates and monthly payments. This can make it much easier to get out of debt because you'll have more money each month to put toward your debts.

Debt Management Programs Pros/Cons
Pros	Cons
It can lower your monthly payments	You may fail to eliminate all of your debt
It can help you get out of debt quicker

A debt management program is ideal for those who are struggling to make their monthly payments. If you're looking for a way to lower your payments and get out of debt quicker, this may be your best solution.

Consider debt consolidation

Another popular debt relief solution is debt consolidation. This requires you to take out a new loan to settle your existing debts.

The new loan should have a lower interest rate than your existing debts, which will help you save money on interest. If you are eligible for a low-interest loan, consolidation can be a reliable way to get out of debt.

Debt Consolidation Pros/Cons
Pros	Cons
It can help you save money on interest	You may be unable to do away with all of your debt
It can help you manage your debts more easily	You may end up with more debt if you're not careful

If you're searching for a way to save money and get out of debt quicker, this option may be ideal.

A final resort: Bankruptcy

Bankruptcy is a legal process that allows you to eliminate your debts and start fresh.

This choice should be considered as a last resort, as it will have a major impact on your credit score. However, if you're unable to find another way to get out of debt, bankruptcy may be the best solution.

Bankruptcy Pros/Cons
Pros	Cons
It can eliminate your debts	It will have a significant impact on your credit score
It can help you start fresh	It may take years before you can qualify for certain loans again

Bankruptcy may be the right solution if you've tried all other options and are still struggling with debt.

Learn more about these New Jersey debt relief programs

WorkFirst NJ: Provides temporary cash assistance and many other support services to families through the Temporary Assistance for Needy Families (TANF) program. This program also helps people get off welfare, secure employment and become self-sufficient, through job training, education and work activities.
Low Income Home Energy Assistance (LIHEAP): Offers financial help in the form of a free grant money, a voucher or credit on an account is provided to lower income households, the disabled or elderly who need assistance paying for their home utility bills.
NJ SNAP: The Supplemental Nutrition Assistance Program helps eligible New Jerseyans—including senior citizens on small fixed incomes—receive benefits that help them afford a nutritionally balanced diet.
Earned income Tax Credit (EITC): A federal and state tax benefit for individuals and families who earn low-to moderate incomes in NJ. It is a tax credit that may reduce the amount of taxes you owe, or provide you with a refund, even if you don't owe any taxes.

Facing financial challenges can be overwhelming, but you don't have to navigate them alone. The Debt Lawyer specializes in offering comprehensive bankruptcy solutions for residents of New Jersey and New York with a team of seasoned team of legal professionals dedicated to providing personalized guidance every step of the way. Whether you're considering filing for bankruptcy or just seeking clarity about your financial situation, you have resources.

How SoloSuit can help

Whatever deft relief option you pick, remember that it will take time and effort to get out of debt. Exercise patience and stick to your plan, and you'll be on your way to financial freedom.

SoloSuit can help you find the right solution for your unique situation. Even if you're facing a lawsuit from debt collectors, use SoloSuit's free Answer form to draft and file a response to the debt lawsuit.

Watch this video to learn more about responding to a debt lawsuit:

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

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>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate