Matt Schulz (Bankrate.com, Credit Card Debt Regions) 7.31.15
Jul 31, 2015|
Matt Schulz (Bankrate.com, Credit Card Debt Regions) 7.31.15 by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Now joined by Matt Schultz who's gonna tell us about the most indebted parts of the country in terms of credit card debt how are you doing Matt. Great program. So when we looked at the I'm metro areas that performed worse here I guess before we get into that what exactly is the methodology that was used in order to figure this out. All we basically compared to the average credit card balance that a person had. Verses being median yearly income in 225. It in this 45 biggest cities in the country. Ian looked at how long it would take to pay that balance so often how much interest they would pay. Assuming that somebody had. Click 15%. Of the city's median income. Toward paying off that debt and what we found was. It's while Boston performed really well coming in with this second lowest. Credit card debt burden in the country. Things weren't quite as good in Texas where we have San Antonio had the highest credit card debt burden. And Dallas and Houston were both in the top five as well. And so when you look at this is there any particular reason why you think you saw some of the ships from one area of the country to another. Really it's all about earnings. In effect is that it's they've folks in the north east Iranians are on the West Coast. Typically earn a little bit more. On a yearly basis. Folks in San Antonio or Dallas or is that in the deep south. In it and when he comes to paying off debts it's probably not any great revelation. That's how much you earned as a major impact on your bill lead to pain at that. Absolutely so what when you look at this again it was more income than there being any massive difference. In terms of credit card debt from area to area. Did you find did you do any studies on just the average balances in these regions. You know what we all was they'd be. The US average was about 4400. Dollars. In what we always did he he is. But it city with the highest credit card balance in Washington DC with a little over 5000 dollars. In bed at the bottom of the scale it was a Riverside San Bernardino California. Which had about 4100. Dollars so. The range. Credit card balances is not quite as severe as the range in her. Have I has has there been any study done on this kind of a all over time do we have any numbers to compare this to. Five or ten years ago where is that not being done to this point. Now that. The first time we looked at this quite this way but what we have seen is that people have started spending more. On their cards since the Great Recession ended. And since we've also seen a slow but steady. Trend toward people paying their balances off. At the end of every month instead of just continually. Revolving and is now. Tolerable Matta I appreciate you coming out of this today and thanks for all the info on this. Thank you actually that was match shoals from Bankrate dot com.