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Location may play a role in consumer credit card debt
By Edith Barlow on Sep 10th, 2010
Americans racked up large amounts of debt after the collapse of the economy in 2008, but a new report from Experian shows location may actually play a role in the amount of debt consumers are taking on. Residents of Denver, Colorado, Phoenix, Arizona, Seattle, Washington and Dallas,Texas are more likely to feel more financial pressure, according to U.S. News and World Report.
Cities that find themselves in debt often have a negative impact on the financial situations of the residents who live there. In these four cities in particular, the Experian report shows the average individual carries nearly $26,100 of debt or higher. Much of this stems from personal loans and credit card usage.
Individuals with elevated levels of debt are more likely to live in areas with high unemployment rates, the news provider relays. Americans without a steady source of income are less capable of paying down existing debt.
The Federal Reserve announced this past week that consumer borrowing had dropped $3.6 billion in July, but much of this had to do with tighter lending restrictions. Analysts say consumers can only continue to avoid debt by maintaining a sense of financial responsibility.
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