New Jersey Financial Distress Profile
Composite distress data for 21 counties, updated quarterly from federal sources. Household debt, delinquency, foreclosure law, and county-level distress scores compared to national averages.
· Data from NY Fed, CFPB, BLS, US Courts, Q4 2025
Behind on your mortgage in New Jersey? See your options under New Jersey law →
New Jersey ranks #21 nationally for household financial distress. County Distress Index details are listed separately for its 21 counties. The national State Distress Index average is 50.0.
How Does New Jersey Compare to the National Average?
New Jersey is above the national average on 3 of 5 key household distress metrics. Credit card delinquency stands at 11.4% (below the 12.4% national rate), auto loan delinquency at 4.2%, and total debt per capita at $69,550.
Since 2019, credit card delinquency in New Jersey has risen 3.9pp and total household debt has grown 17.7%. The state shows a mixed distress picture across different debt categories.
Key Statistics at a Glance
State Distress Index: New Jersey
Movement since 2006
Since 2006, New Jersey has climbed from the 29th-most distressed jurisdiction to the 15th-most distressed, as of 2025 Q1. Its composite State Distress Index score rose from 48.9 to 63.9 over the same span.
Quarter-aligned back-series. Each quarter re-ranks all 51 jurisdictions on that quarter's own data, so a state's position here can sit several spots from the current reading above, which uses each input's latest value.
Domain Breakdown
The national American Distress Index reads 43.8 (Typical). On average, its inputs sit higher than in 44% of their own quarterly histories. New Jersey's State Distress Index of 60.0 (moderate-high state distress) is computed from 4 equal-weighted domains covering delinquency, default and legal signals, housing-basis debt burden, and labor.
New Jersey vs. National Average
Delinquency rates measure the share of loan accounts 30 or more days past due. Higher rates signal greater household financial stress. Debt and balance figures are per capita, adjusted for state population.
Download all states (CSV)New Jersey vs. National: 5 Key Metrics (Q4 2025)
Source: NY Fed Consumer Credit Panel / Equifax, Q4 2025.
Similar States by Distress Level
States ranked closest to New Jersey (#21) on the State Distress Index. Peer comparison reveals whether distress patterns are regional or structural.
| State | SDI Score | Score Label | Highest Domain |
|---|---|---|---|
| New Jersey | 60.0 | moderate-high state distress | Debt Burden (housing basis) |
| Alabama | 61.6 | moderate-high state distress | Default & Legal |
| Kentucky | 61.6 | moderate-high state distress | Default & Legal |
| West Virginia | 57.9 | moderate state distress | Delinquency |
Change Since 2019
Pre-pandemic 2019 values provide a baseline for how distress has evolved. Credit card and auto loan delinquency have risen sharply in most states since pandemic-era forbearance protections expired.
| Metric | 2019 | 2025 | Change | Nat'l 2025 |
|---|---|---|---|---|
| Credit Card Delinquency | 7.5% | 11.4% | +3.9pp | 12.4% |
| Auto Loan Delinquency | 3.9% | 4.2% | +0.3pp | 5.2% |
| Mortgage Delinquency | 1.73% | 1.12% | -0.6pp | 0.94% |
| Total Debt per Capita | $59,100 | $69,550 | +17.7% | $63,200 |
| CC Balance per Capita | $4,170 | $5,160 | +23.7% | $4,350 |
New Jersey Foreclosure Law Summary
Understanding your state's foreclosure process is critical if you fall behind on mortgage payments. New Jersey primarily uses judicial foreclosure.
New Jersey is an exclusively judicial foreclosure state. All mortgage foreclosures must be filed in the Superior Court, Chancery Division. Non-judicial (power of sale) foreclosure is NOT available for residential mortgages in New Jersey.
- Post-sale redemption: 10 business days after sheriff's sale
- foreclosure rescue fraud
Court Oversight, but Rising Pressure
Despite 3 metrics exceeding national averages, New Jersey's judicial foreclosure requirement provides court oversight that slows the process and gives homeowners more time to respond. But judicial protection doesn't prevent distress — it extends the timeline. With a credit card delinquency rate of 11.4% (#24 nationally) and a Distress Index score of 60.0 (moderate-high state distress), New Jersey ranks #21 of 51 jurisdictions for household financial distress.
Distress by County
The County Distress Index scores every county in New Jersey on a 0-100 scale using five equal-weighted domains: delinquency, default and legal, debt burden, labor, and safety net and buffer. New Jersey's 21 counties average 51.7 — near the national county mean of 50.0.
Score Label Distribution
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Most Distressed Counties
| County | Score | Score Label | Top Driver |
|---|---|---|---|
| Cumberland County | 83.0 | very high county distress | Debt Burden (housing basis) |
| Essex County | 74.1 | high county distress | Debt Burden (housing basis) |
| Atlantic County | 69.5 | moderate-high county distress | Debt Burden (housing basis) |
| Passaic County | 67.3 | moderate-high county distress | Debt Burden (housing basis) |
| Salem County | 66.5 | moderate-high county distress | Debt Burden (housing basis) |
Cumberland County ranks #87 most distressed nationally out of 3,144 counties.
Least Distressed Counties
| County | Score | Score Label | Top Domain |
|---|---|---|---|
| Morris County | 24.8 | low county distress | Debt Burden (housing basis) |
| Hunterdon County | 25.7 | low county distress | Debt Burden (housing basis) |
| Somerset County | 32.7 | low-moderate county distress | Debt Burden (housing basis) |
| Bergen County | 37.7 | low-moderate county distress | Debt Burden (housing basis) |
| Monmouth County | 38.1 | low-moderate county distress | Debt Burden (housing basis) |
The gap between New Jersey's most and least distressed counties is 58.2 points — Cumberland County (83.0, very high county distress) vs. Morris County (24.8, low county distress). That spread reveals two very different economic realities within the same state.
Explore all 21 New Jersey counties →CFPB Mortgage Complaints in New Jersey
The Consumer Financial Protection Bureau has received 20,074 mortgage complaints from New Jersey since 2012 — 216.1 per 100,000 residents, above the national rate of 133.2 per 100K. New Jersey ranks #3 of 51 jurisdictions for complaint density.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Complaints | 1,080 | 1,183 | 1,012 | 840 | 761 | 819 |
Source: CFPB Consumer Complaint Database. Filed a mortgage complaint? Search the complaint database.
Bankruptcy Filings: New Jersey
The Administrative Office of the U.S. Courts filing rate reports annual cases per resident. It does not identify household causes, motives, assets, income, or case outcomes. New Jersey's filing rate is below the national average.
Source: U.S. Courts, Administrative Office. Table F-2: Cases Commenced by Chapter. Per-capita rates use 2024 Census population estimates.
Credit Distress: New Jersey
The Philadelphia Fed Consumer Credit Explorer tracks credit health metrics from Equifax data. 10.0% of New Jersey residents have debt in collections — below the national rate of 13.9%. 14.7% have subprime credit scores (below 620), and 34.2% are credit-constrained.
Source: Philadelphia Fed Consumer Credit Explorer. Data from NY Fed Consumer Credit Panel / Equifax. 2025 Q1.
Economic Context: New Jersey
SNAP enrollment and unemployment rates provide upstream context for household debt distress. Higher food assistance enrollment signals that more families are struggling with basic expenses, while elevated unemployment directly reduces income available for debt service.
Sources: USDA Food and Nutrition Service, BLS Local Area Unemployment Statistics. Population: U.S. Census Bureau 2024 estimates.
Safety Net Strength: New Jersey
The Safety Net Index measures how much support infrastructure is available to households in financial distress — combining healthcare coverage, food assistance, emergency housing funds, and legal protections. New Jersey scores 57.5 out of 100 (Moderate), ranking #13 of 51 jurisdictions.
Component Breakdown
Sources: Kaiser Family Foundation (Medicaid, 2024), USDA FNS (SNAP, 2025), U.S. Treasury HAF program status, state foreclosure statutes.
Frequently Asked Questions
What is the credit card delinquency rate in New Jersey?
The credit card delinquency rate in New Jersey is 11.4% as of Q4 2025, ranking #24 among all states and DC. The national average is 12.4%. This rate has risen from 7.5% in 2019.
How does New Jersey's household debt compare to the national average?
New Jersey residents carry $69,550 in total debt per capita, above the national average of $63,200. Debt per capita has grown 17.7% since 2019. New Jersey ranks #13 nationally for total household debt per capita.
What is the auto loan delinquency rate in New Jersey?
Auto loan delinquency in New Jersey stands at 4.2% as of Q4 2025, below the national rate of 5.2%. This ranks #29 nationally. The rate has risen from 3.9% in 2019.
What type of foreclosure process does New Jersey use?
New Jersey primarily uses judicial foreclosure. This means foreclosures must go through the court system, giving homeowners more time and procedural protections. See our full New Jersey foreclosure law guide for timelines, protections, and legal resources.
Is New Jersey above or below the national average for financial distress?
New Jersey scores 60.0 on the State Distress Index (moderate-high state distress), ranking #21 of 51 jurisdictions. That is 10.0 points above the national state average of 50.0. This composite score is built from 4 domains: delinquency, default and legal, debt burden on a housing basis, and labor. Separately, the national American Distress Index reads 43.8 (Typical) for the country over time. On average, its inputs sit higher than in 44% of their own quarterly histories.
How many CFPB mortgage complaints have been filed in New Jersey?
The CFPB has received 20,074 mortgage complaints from New Jersey since 2012, a rate of 216.1 per 100,000 residents. This ranks #3 of 51 jurisdictions. The national average is 133.2 per 100K. Companies responded to 98.3% of New Jersey complaints within the required timeframe.
What is the bankruptcy filing rate in New Jersey?
New Jersey had 14,171 bankruptcy filings in the 12-month period ending Dec 2025, a rate of 152.5 per 100,000 residents — below the national rate of 169.1 per 100K. This ranks #24 of 51 jurisdictions. Chapter 7 filings account for 60.5% and Chapter 13 for 36.2%. Filings changed +4.9% year-over-year.
What percentage of people in New Jersey have debt in collections?
10.0% of individuals in New Jersey have debt in collections, below the national rate of 13.9%. This ranks #38 of 51 jurisdictions. Additionally, 14.7% of New Jersey residents have subprime credit scores (below 620), compared to 16.9% nationally. Data from the Philadelphia Fed Consumer Credit Explorer (NY Fed / Equifax).
What is the SNAP enrollment rate in New Jersey?
775,119 residents of New Jersey receive SNAP benefits, an enrollment rate of 8.2% — below the national rate of 10.9%. This ranks #36 of 51 jurisdictions. SNAP participation has changed -6.2% year-over-year. The pre-pandemic rate was 7.1%.
How strong is New Jersey's financial safety net?
New Jersey scores 57.5 out of 100 on the Safety Net Index, ranking #13 of 51 jurisdictions (Moderate). The score combines Medicaid coverage (17.1% enrollment rate, expansion state), SNAP enrollment (8.2%), Homeowner Assistance Fund status (active), and foreclosure legal protections. The national average is 47.8.
Which New Jersey counties have the highest financial distress?
Cumberland County is the most distressed county in New Jersey with a County Distress Index score of 83.0 · very high county distress, ranking #87 nationally out of 3,144 counties. Essex County (74.1 · high county distress), Atlantic County (69.5 · moderate-high county distress), Passaic County (67.3 · moderate-high county distress) round out the top distressed counties. Morris County is the least distressed at 24.8 · low county distress. See all 21 counties at /counties/new-jersey/.
How long can foreclosure take in New Jersey?
New Jersey uses judicial foreclosure, meaning every foreclosure goes through the court system. In New Jersey, the bank can foreclose in roughly 270–600 days from first missed payment to sale — though individual cases vary with cure periods, mediation, postponements, court backlogs, and bankruptcy filings. Homeowners have a right to cure: Up to the date of entry of final judgment — significantly more protective than s…. The homestead exemption is Varies. Full details at /help/foreclosure/new-jersey/.
Where does New Jersey rank for financial distress?
New Jersey scores 60.0 on the State Distress Index (moderate-high state distress), ranking #21 of 51 jurisdictions. 3 of 5 key metrics exceed national averages. The highest SDI domain is Debt Burden (housing basis). County Distress Index details are listed separately by county. The safety net ranks #13 (Moderate).
Data Sources
NY Fed Consumer Credit Panel
State-level household debt and delinquency statistics from the Federal Reserve Bank of New York, based on Equifax credit bureau data. Updated quarterly.
American Distress Index
Composite index tracking U.S. household financial distress across five equal-weighted domains. National score as of the latest available quarter.
New Jersey Foreclosure Statutes
State foreclosure law data compiled from primary statutory sources and validated against legal databases. Last verified 2026-03-10.
CFPB Complaint Database
Mortgage complaints filed with the Consumer Financial Protection Bureau, 2012–present. Density calculated using 2024 Census population estimates.
USDA SNAP State Activity
Monthly SNAP participation by state from the USDA Food and Nutrition Service. Enrollment rates computed against 2024 Census population estimates.
U.S. Bankruptcy Courts
Annual bankruptcy filings by chapter and district from the Administrative Office of the U.S. Courts. Per-capita rates computed against 2024 Census population estimates.
Philadelphia Fed Consumer Credit Explorer
Quarterly credit health metrics (collections, subprime share, delinquency, credit-constrained rates) from Equifax via the NY Fed Consumer Credit Panel.
Safety Net Index
Composite score from KFF Medicaid enrollment (2024), USDA SNAP participation (2025), U.S. Treasury HAF program status, and state foreclosure legal protections.