Studies Show That Many U.S Cities are Still in Heavy Credit Card Debt

According to a recent study carried out by the credit bureau Equifax, many families in cities and towns across the United States are still struggling with heavy credit card debt.

The study showed that many families who struggled through the worst period of the recent economic crisis have not yet recovered from their credit card debt with some families having to pay almost 20% of their monthly salary just to keep up with payments.

Another study carried out by Experian, another major credit bureau, showed that whilst the average debt of consumers in the U.S is down 4% from the same time last year, many families are still burdened with an average credit card debt of $4200.

Unfortunately for many residents in cities across America, statistics have shown that there are many cities currently in a level of debt that is above the national average for the United States.

Of all the cities in the U.S, here are the top five cities currently struggling with heavy credit card debt.

1.       Dallas.

According to the vice president for education at Experian, the average debt that a Dallas resident currently holds is just under $5000 dollars, with this figure being around 15% above the national average. With many Dallas business owners still facing foreclosure due to the economic crisis of the past decade, this has consequently called for the need to borrow money on their credit card just to keep their business in operation.

2.       Jacksonville.

Jacksonville residents are also reported as having a very low credit score when compared to other states across the U.S. The average credit card debt of Jacksonville residents currently stands at $5,515 which again, is a result of businesses facing foreclosure and many people across the state being made redundant.

3.       Atlanta.

The credit card debt in Atlanta is also reported to be one of the worst in America. This is partly due to the spending habits of Atlanta residents but perhaps more to blame on the recent housing crash in the state. The current average credit card debt in Atlanta is $4,960.

4.       Honolulu.

Residents of Honolulu hold an average credit card debt of around 15% above the national average. However, the most significant difference between many of the other states that hold high credit card debt is that Honolulu residents are reported to have high credit scores. This in turn is a clear reflection of the responsible credit behaviors that residents in this state currently have so whilst the debt may be above average, residents are not struggling as much as their neighboring states.

5.       San Antonio.

Finally, out of all the states mentioned, San Antonio residents have the largest credit card debt when compared to all other states in the U.S. With the unemployment level being considered low in the state, one may ask as to why this credit card debt does indeed exist but with the majority of the population on a low monthly salary, this is perhaps why residents are more likely to borrow money on their credit cards when compared to states in which the average salary is considerably higher.

Conclusion.

Although many residents in states across the U.S are currently struggling with their credit card debt, this year’s average debt for the U.S as a whole is down by 4 to 5%. However, debt is still very much a difficult part of many people’s lives in the U.S today and at this current point in time, study shows that over 50 million households in the U.S are still deeply in credit card debt.