Federal Reserve Bank data shows that consumers throughout the United States are shouldering the highest levels of debt since the months before the Great Recession of 2008. New Jersey residents are carrying more debt than other Americans. The following information reflects Federal Reserve Bank of New York data through year-end 2016 for New Jersey residents:
- Consumer distress rates in New Jersey are below the national 18.7 percent rate. In the state of New Jersey, 15.2 percent of debtors are 90 days or more late on loans or have a third-party collection balance. New Jersey’s statistics show a higher stress load than New York’s 13.7 percent and Connecticut’s 14.4 percent distress rates.
- Student loan delinquency is also less than the average national 15.6 percent level. New Jersey’s student loan delinquency rate is 13.0 percent reflects the percentage of borrowers who were 90 days or more late on student loan payments. New Jersey’s student loan delinquency levels are higher than New York’s 12.1 percent rate and Connecticut’s 12.7 percent rate.
- Mortgage loan delinquency rates in New Jersey are higher than the national average. The national rate is approximately 1.8 percent, compared to 3.1 percent in New Jersey. New York’s 2.7 percent and Connecticut’s 2.3 percent rates show higher consumer stress levels of mortgage delinquency in New Jersey.
- Mortgage loan balances are significantly higher in northern New Jersey are higher than the average national mortgage balance. The average northern New Jersey resident carries at $183,200 loan balance, compared to the average American’s $124,600 loan balance. Mortgage rates are similar in northern New Jersey versus the nation. [Note: The average New Jersey resident carries a mortgage loan balance of $153,300.]
- Delinquency rates are rising. About 3.1 percent of New Jersey homeowners are 90+ days late on their mortgage payments. Almost five percent are late on auto loans. Eight percent are late on credit card payments.
- About 6.6 percent of New Jersey residents carry an HELOC loan, versus 4.8 percent of borrowers in the United States.
- Eighteen percent of New Jersey residents have student loan debt, compared to an average 16.7 percent of U.S. borrowers.
- A stunning 61.7 percent of New Jersey residents have credit card debt, versus 55 percent of U.S. debtors. The average Garden State resident owes $6,100 in credit card debt.
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