Why New Jersey lawmakers must address rising credit card debt

There’s been a lot of talk out there lately about credit card debt and how bad it’s been getting all throughout the country. And there are a number of reasons for this that are becoming a core issue for so many in the U.S.

That’s especially true here in New Jersey, where we’ve also seen credit card usage spike at what might be viewed as an alarming rate. But the crazy part is that a vast majority of households aren’t misusing their cards.

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Rather, they’re just trying to make ends meet in a world that’s getting more and more expensive. It’s prices going up but not wages, which is putting additional strains on some New Jersey households.

At some point, we’re going to hit that limit where so many of us will be forced into a very unfortunate situation.

It’s one thing if credit was getting misused. It’s another when you’re forced to use cards simply because you have no other means to pay for the necessities of life.

And it’s that discrepancy of prices going way up fairly quickly, but payrates remaining flat or not keeping up with the cost of goods that’s at the core of this growing issue.

Credit card relief?

First off, I don’t even know if this is possible for New Jersey lawmakers to tackle. Should we try to find a way to wipe credit card debt just so we don’t get buried in this endless cycle of minimum payments that’ll never go away?

Much like how New Jersey has helped those with medical debt, this could work the same way. Especially if that credit card debt was accumulated by simply trying to make ends meet and not abusing the credit limits.

If it’s proven that a household is really struggling but are trying to do everything right, then that would be the prime candidate to receive relief. Especially for those who are working or were let go by no fault of their own.

Force limits on the credit card companies?

Although some in New Jersey might like the idea of wiping credit card debt, others might not be on board with it. Especially those who have managed to keep their cards in check.

That opens up another possibility. What if, after a certain period of time, a credit card company was banned from charging any more interest in order to help individuals actually pay down their debt?

This could also be on a case-by-case bases and be awarded to those who have been making minimum payments but yet remain maxed out. If a certain period of time goes by, those individuals should qualify for the state to step in and help stop that vicious credit card cycle.

Good idea, or overreaching?

Some might also argue that the government stepping in to help us tackle our credit card debt is overreach. But in a state where we’re already overtaxed, shouldn’t the money go back to its citizens anyway?

The above post reflects the thoughts and observations of New Jersey 101.5 weekend host & content contributor Mike Brant. Any opinions expressed are his own.