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Scura, Wigfield, Heyer, Stevens & Cammarota Blog

Non-Financial Consequences of Credit Card Debt

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It is very common for residents in New Jersey and elsewhere in the nation to use a credit card. Moreover, it is also common for consumers to have multiple credit cards with a balance on them. While it can be relatively harmless to use credit cards for major purchases, some bad spending habits could lead to very difficult financial challenges.

While the financial issues related to credit card debt are known and obvious, there are other non-financial consequences of credit card debt that many do not consider. Here are five major ways credit card debt could be harmful to consumers in non-financial ways.

How Can Consumers Budget After Filing for Bankruptcy?

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Dealing with financial problems is never easy for individuals in New Jersey or elsewhere in the nation. In most cases, individuals and families are able to initiate a debt relief option in order to address and sometimes alleviate their debt problems. But going back to everyday life after filing for bankruptcy can be difficult for some. Consumers fear that they might end up in the same situation they were in before bankruptcy, causing them to land them right back into debt problems.

Avoiding Foreclosure with Mortgage Loan Modifications Made Simple

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Due to unforeseen life circumstances, many individuals fall behind on mortgage payments, which will eventually lead to foreclosure proceedings. In order to avoid foreclosure, or during the foreclosure process, an individual may seek a loan modification from the lender. A loan modification is a permanent restructuring of the mortgage terms to provide a more affordable payment to the borrower. In general, the primary goal is to help the borrower reduce their monthly mortgage payments to 31% of their gross income.

Debt Collection Techniques to Be Aware of Once a Judgment Is Entered Against You

If you have a judgment that has been entered against you, then you may be feeling terrified about the next steps that a creditor may take to collect their judgment.  Many questions may race through your mind as to what will happen next.  This blog will explore post-judgment collection techniques used by creditors.

Knowing the Creditors Time to Collect on a Debt

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It is crucial to fully understand how long a creditor has to collect on a debt.  There are a series of laws in place that govern debt collection procedures including for example: the timeframes for collecting a debt, the practices and procedures for collecting a debt, and the penalties for violating these procedures.  This series of laws is called the Fair Debt Collection Practices Act (“FDCPA”). 

The New Jersey Fair Debt Collection Practices Act (“NJFDCPA”) fortifies the federal FDCPA and bans debt collectors from using unfair and dishonest practices.  As with the federal law, the NJFDCPA guidelines apply only to debt collectors and does not apply to original lenders.  The FDCPA defines a debt as any obligation of a consumer to pay money arising out of a transaction primarily for personal, family or household purposes, including money owed on a personal credit card account, an auto loan, a medical bill or mortgage.  The FDCPA prohibits debt collectors from using abusive, unfair or deceptive practices when attempting to collect a debt.   

Why Debt Consolidation is a Bad Idea (or Worse, a Scam)

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There is a huge stigma that goes along with filing for bankruptcy.  The word bankruptcy invokes a feeling of failure and immorality. People dread the thought that bankruptcy may be in their future.  But debt consolidation, debt resolution, credit management, debt relief, etc.; these terms invoke a completely different emotional response.  These concepts are marketed as an alternative to bankruptcy: a way out of financial hardship, but not shirking one’s responsibilities. 

Don’t be The Next Victim

Debt relief agencies are great at marketing, but are a poor choice in most circumstances.  Debt relief agencies promote that their services are an alternative to bankruptcy, but in truth they are preying on people’s emotions, spouting a false narrative, and creating false expectations.

Debt Settlement: The Truth about What to Expect

Most individuals who find themselves in financial difficulty feel that bankruptcy is their last option. Unfortunately, this misconception often leads individuals to be preyed upon by the pseudo-legal debt settlement industry believing it to be an “alternative to bankruptcy”.  These services, which may seem like the better choice, in truth, leave individuals believing that the creditors are stopped from collecting and that they are on the path to recovery.  Nothing is further from the truth. The reality is this: in comparison to most debt settlement services, bankruptcy is almost always the best long-term option.

Debt Collection Options for Small Businesses

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When residents in New Jersey decide to start a business, it is very common that they will seek a small business loan. While it is obvious that at the start of the small business the owner will deal with a certain amount of debt, if the business fails to accumulate revenue and assets, they might have to consider debt relief options, filing for Chapter 11 bankruptcy or even ending the business. This is why it is important to understand how to address business debt, especially when they are dealing with their own debt collection issues from their customers or clients.

Debt Piling Up?  Explore Your  Options – Including Bankruptcy

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Is your debt piling up and becoming overwhelming? Many Americans will unfortunately find themselves in such a situation due to loss of a job, medical bills,  credit card debt or other financial difficulties. In New Jersey and across the country, people are often struggling to get a firm footing again.

If you are beginning to feel overwhelmed, there are several things to keep in mind:

Harassed by Debt Collectors?  You’re Protected by Federal Law


No one likes being pestered by debt collectors calling at all hours of the day, making empty threats and using language that makes one blush. Fortunately, a federal law known as the Fair Debt Collection Practices Act protects individuals from debt collector and creditor harassment. It also makes it illegal for debt collectors to use unfair, deceptive or abusive tactics to provoke people to pay up.

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