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Atlanta residents finding more trouble handling debt
09/27/2010
New reports from TransUnion, a credit reporting agency, show that Atlanta residents have decreased their credit card debt by 13 percent since the beginning of the recession in 2008. Although this appears to be promising, statistics show more banks are writing off debt, which may be the main reason for the decline.
Credit card debt dropped $12 billion in the second quarter, according to the Atlanta Journal-Constitution, but banks are responsible for writing off $21.8 billion of this amount. Delinquent accounts, which are 180 days late, are erased by lenders that don't expect to see the money repaid.
Atlanta residents are at a 19 percent higher risk of becoming delinquent on payments than the rest of the nation, the Journal-Constitution reports. Foreclosure, bankruptcy and heightened unemployment rates are to blame.
"Individuals might be tightening the belt a little bit also," TransUnion representative Steve Katz told the newspaper. "Individuals who are gainfully employed might just be concerned enough to be more diligent."
Borrowers finding difficulty handling credit card debt can consider consolidation. By transferring debt to a card with a lower interest rate, consumers can reduce their monthly payments.
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