Somerset County Shows prudent Credit Card Habits in New Jersey
Somerset County, known as one of New Jersey’s wealthiest, demonstrates fiscally responsible habits when it comes to credit card usage.
A recent SmartAsset study highlights that Somerset County boasts some of the lowest credit card debt levels relative to annual income in the Garden State.
Key Findings: Somerset County Credit Card Debt
The study analyzed credit card debt per person in relation to income and net worth, generating a debt-adjusted score to pinpoint areas where residents manage credit cards most effectively.
Residents of Somerset County carry an average credit card debt that represents just 8.25% of their income. This figure is the second-lowest in New Jersey, with an average income reported at $70,321 and average credit card debt at $5,798.49.
Hudson County leads the state with the lowest credit card debt rate, standing at 7.87%.
New Jersey county Credit Card Debt Rankings
Here’s a look at how New Jersey counties rank regarding credit card debt relative to income:
| Rank | County | Income | Credit Card Debt | Credit Card Debt % of Income | Overall Index |
|---|---|---|---|---|---|
| 1 | Hudson County | $53,998.00 | $4,249.98 | 7.87% | 29.99 |
| 2 | Somerset County | $70,321.00 | $5,798.49 | 8.25% | 29.47 |
| 3 | Cape May County | $54,325.00 | $4,665.80 | 8.59% | 29.00 |
| 4 | Morris County | $69,226.00 | $5,968.60 | 8.62% | 28.95 |
| 5 | Mercer County | $52,101.00 | $4,632.04 | 8.89% | 28.58 |
| 6 | Hunterdon County | $71,070.00 | $6,373.62 | 8.97% | 28.47 |
| 7 | Essex County | $48,021.00 | $4,347.18 | 9.05% | 28.36 |
| 8 | Union County | $51,850.00 | $4,695.50 | 9.06% | 28.35 |
| 9 | Monmouth County | $65,545.00 | $5,957.80 | 9.09% | 28.31 |
| 10 | Cumberland County | $33,587.00 | $3,071.38 | 9.14% | 28.23 |
| NJ | $52,254.90 | $4,901.03 | 9.47% | 17.88 |
Managing Credit Card Debt: A Long-term Strategy
Effective credit card management is crucial for maintaining financial health. High credit card debt can negatively impact credit scores, making it harder to secure loans or favorable interest rates on mortgages.
Pro Tip: Consider setting up automatic payments to avoid late fees and keep your credit utilization low.
Here are some evergreen tips for keeping credit card debt under control:
- Create a Budget: Track your income and expenses to identify areas where you can cut back.
- Pay More Than the Minimum: Paying only the minimum amount due each month can lead to accumulating interest and prolonging debt repayment.
- Balance Transfers: If you have high-interest credit cards, consider transferring the balance to a card with a lower interest rate.
- Debt Snowball or Avalanche: use proven debt repayment methods to systematically pay off your balances.
Did You Know? The average credit card interest rate in the U.S. hovers around 20%.Paying off your balance each month avoids these charges.
Frequently Asked Questions About Credit Card Debt
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What New Jersey County has the lowest credit card debt relative to income?
Hudson County has the lowest credit card debt relative to income in New jersey.
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How does Somerset County rank in terms of credit card debt compared to income?
Somerset County ranks second lowest in New Jersey for credit card debt compared to income.
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What is the average income in Somerset County?
The average income in Somerset County is $70,321.
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What is the average credit card debt in Somerset County?
The average credit card debt in Somerset County is $5,798.49.
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What factors were considered in the SmartAsset study about credit card debt?
The SmartAsset study considered credit card debt per capita relative to both income and net worth.
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Why is managing credit card debt important?
Managing credit card debt effectively can improve financial stability and overall credit health.
What strategies do you use to manage your credit card debt? Share your thoughts in the comments below!