Debt Settlement in New Jersey

Statistics and Laws on New Jersey Debt

Consumers in New Jersey carry an average of $7,600 in unsecured credit card debt, which is significantly higher than the national average of around $5,200 per consumer. The average credit score in New Jersey is “good” with scores around 675. Median household income in Jersey is over $68,000, which is considerably higher than the U.S. national average of $51,000. Unemployment rates in New Jersey average just above 7% throughout the state, but Newark and Patterson have unemployment closer to 15%.

6% is the maximum interest rate that a collection agency can charge in New Jersey. The level of New Jersey Wage Protection is decided by the judge, but should be at least 90% if earning less than $7,500/year.

Statute of Limitations in New Jersey

The statute of limitations sets the time limit that creditors have to collect on a New Jersey debt. These limitations apply to the maximum period of time after a debtor has become delinquent on repaying the debt. The limitations for New Jersey include:

  • Written Contracts: 6 Years
  • Oral Agreements: 6 Years
  • Open Credit Card Accounts: 6 Year
  • Promissory Notes: 6 Years

Process of Debt Settlement in New Jersey

How Does Debt Settlement Work?

Debt Settlement is an effective form of relief for unsecured debt accounts that works by negotiating a payment for less than the principal balance owed. This is different from Debt Consolidation and Credit Counseling which simply reduce the interest rates & do not affect the total debt balance.

By negotiating the balance, Debt Settlement can provide a much faster means of handling New Jersey debt when compared to some of the other debt relief alternatives. Many creditors are willing to compromise & accept a payment of much less than the principal balance as this is a better alternative than losing the entire amount in a bankruptcy proceeding.

Our team of expert debt negotiators at New Era Debt Solutions & CFLN have a history of finding awesome deals in New Jersey, but the offers don’t last forever. The most successful New Jersey debt settlement clients are those that are ready and willing to respond immediately.



These types of debts can be included in a New Jersey Debt Settlement Program:


  • Credit cards
  • Signature loans
  • Department store cards
  • Old repossessions
  • Old judgments
  • Personal lines of credit
  • Other unsecured debts
  • Private student loans in default


Types of debts that do not qualify for settlement:


  • Car loans
  • Home mortgages
  • Federal student loans
  • Credit Union debts
  • Medical / Hospital bills
  • Other secured debts


New Jersey Debt Settlement Services by City


  • Newark Debt Settlement
  • Jersey City Debt Settlement
  • Paterson Debt Settlement
  • Elizabeth Debt Settlement
  • Edison Debt Settlement
  • Woodbridge Debt Settlement
  • Lakewood Debt Settlement
  • Toms River Debt Settlement
  • Hamilton Debt Settlement
  • Trenton Debt Settlement


Be sure to check with your New Jersey debt counselor for a more exhaustive list.


Options for Debt Relief in New Jersey

Here is a brief description of each of those five debt relief methods.

1. Continue to make minimum monthly payments until the debt is repaid.

It may feel like the right thing by continuing to make minimum monthly payments, but this is often the longest path to attaining freedom from debt.

2. Debt Management Plan (DMP) or Credit Counseling.

Debt Management Plans & programs are a form of credit counseling where a single monthly payment is made to a credit counseling agency, and in turn, that agency then distributes the money to creditors on your behalf. Ideally, the counseling agency can secure lower interest rates so the debt can be paid off faster. With this form of debt relief, 100% of the debt balance plus interest still has to be repaid. These programs are designed to take between 3 to 5 years and have very low completion rates in New Jersey.

3. Debt Consolidation Loan.

With a debt consolidation loan, a larger, low-interest loan is taken out and used to pay off higher-interest unsecured loans. This leaves with a single monthly payment that is theoretically lower than what you were paying before for all of your credit card and other unsecured loans.

4. New Jersey Debt Settlement or Debt Negotiation Program.

Debt settlement is unique from the first two options of debt relief in the sense that it is able to reduce the total balance owed, not just the interest rate. Because you end up owing less, New Jersey debt settlement is generally a faster and less expensive debt relief option than either debt counseling or debt consolidation.

5. Filing for Bankruptcy in New Jersey.

Bankruptcy may be an inevitable end for the individual who cannot meet his or her debt obligations. A formal declaration of bankruptcy stops the creditor collection process, and the debtor no longer owes some or all the unsecured debt, but there is also significant damage done to one’s ability to use or secure credit for years afterward.

Figure Out Where You Stand with Debt


Are you burdened by a legitimate financial hardship condition?


Most New Jersey debt problems are caused by a combination of factors such as: medical issues, a loss of income, and divorce or separation. These situations can create legitimate financial hardships that can happen to anyone through no fault of their own and can wreak serious havoc on the budget of any household.

A New Jersey Debt Settlement program is not a “get out of jail free card” for those who don’t want to pay their debts. But if you are being buried in debt due to a hardship circumstance and you’d prefer to work things out with your creditors rather than declare bankruptcy, then a New Jersey Debt negotiation program could provide an honest and ethical form of debt relief.


Are you committed to getting out from under your debt?

New Jersey quarter on pile of cashFor those who are willing to see it through, debt settlement can get you through your financial difficulties faster and at a lower cost than any other debt relief option in New Jersey. Debt Settlement is an aggressive approach to debt relief where success is often determined by your level of commitment to staying the course, even when the road gets a little bumpy.

Are your New Jersey debts primarily from unsecured credit cards?

Most types of unsecured debt can be negotiated for settlement including: personal lines of credit, repossession deficiencies, signature loans, department store cards, financing contracts, miscellaneous bills and more. However, the biggest returns are typically obtained from credit card debts; so, if most of your debt load is comprised of credit card debt, you can expect good results from the process of debt settlement.

How Do I Know I Can Trust New Era?

It is always a good idea to check with the Better Business Bureau for the company’s rating and complaint history with consumers in New Jersey. New Era Debt Solutions is rated an A+ with the Better Business Bureau. You can also ask these 14 important questions to get an idea of what a debt settlement company is really about.

New Era has been helping consumers in New Jersey become debt-free for over 2 decades. We’ve settled more than $275,000,000 in debt and worked with thousands of clients in association with Consumer First Legal Network. But don’t take our word for it. Visit our Testimonials page to see what past clients have had to say about our debt relief services.


Here’s What Makes New Era the Right Debt Settlement Company for You:

 No Upfront Fees. A Debt Settlement company should never charge you any fees unless or until they settle your debt. Period. This is not only the most ethical way to do business – per an FTC ruling effective October 27, 2010, it’s also the only legal way to charge fees for debt settlement.

  • End-to-end service. Some “debt settlement” companies you may talk with are only sales groups who will sell or pass your account off to a different company to handle your settlement. This means your financial data is being passed around and the salesperson has no control over – or interest in – how your debt is settled. Look for a company such as New Era who will handle your program from beginning to end.
  • No “add-on” fees. Some debt settlement companies try to get around the law by charging administrative fees, signing fees, consultation fees, and various other excuses to get money from you. Good guy debt settlement companies such as New Era charge only a settlement fee, which you do not pay until your debt is settled.
  • Experience. With the crash of the sub-prime mortgage industry in New Jersey many new debt settlement companies headed by prior mortgage industry people suddenly popped up. These companies do not have nearly the experience or the relationships that lead to your best settlement deals. Look for companies who have been around long enough to amass a solid settlement track record. For example, New Era has been settling debts since 1999, and we’ve settled more than $275,000,000 in debt for our clients.

Get Started Down the Road to Being Debt Free

Consumers in New Jersey can get a FREE analysis of their debt by giving us a call. Let our team of debt relief experts show you how much time and money you can save with the right debt relief program. Contact us at New Era Debt Solutions to get started.