The painful truth about why NJ families can’t escape credit card bills

When I was a kid, I remember my father sitting at the dining room table once a week, paying bills. My dad, never one to realize you should shield a 5-year-old kid from adult problems, used to tell me he had no idea how to pay them.

Credit cards were his downfall.

We were pretty poor, and somehow he managed to “borrow from Peter to pay Paul,” a favorite saying of his, to keep going another month.

But he more often than not could pay only the minimum, which extends your debt indefinitely and costs you far more.

The true cost of only paying minimum balances

“Households that can increase monthly payments even slightly can significantly shorten the time it takes to become debt-free, reducing both stress and the total interest paid,” explains Carlton Crabbe, spokesperson for Capital for Life.

“By understanding exactly how much they owe and mapping out a realistic payoff schedule, families can regain control over their finances and avoid falling into long-term cycles of debt.”

SEE ALSO: What you need to earn hourly just for a 2-bedroom apartment in NJ

New Jersey leads nation in longest credit card payoff time

Capital for Life did a study to determine which states take the longest to pay off their credit card debt.

New Jersey tops the list. It takes us the longest of all fifty states. It takes us an average of 27.94 months. Our average household credit card debt is $4,950.

As bad as that is, it took my father a lot longer. He eventually was able to break free of the financial noose around his neck, but it took the poor guy many years.

Tips for NJ families struggling with debt

If you can put down anything extra above the minimum payment due each month, do it!

Because it’s the interest that kills you, start with the card with the highest interest rate. It’s yet another category in which New Jersey doesn’t enjoy being number one, and probably serves as a testament to the fact that politicians need to start making New Jersey more affordable.