Update on credit card debt levels across the United States from USA Today:
It’s down… and up as well. A number of metro areas around the country with above average rates of unemployment and home value decline also have expanding average credit card debt loads. Although down overall, this highlights a possible correlation and culprits to the debt problem: the real estate decline and a lack of job income.
But the expansion of average credit card debt amounts happened in areas that may be experiencing increases for reasons other than homes and jobs such as a young demographic and a perception of relative job security.
The mix of debt management advice that we promote is reinforced by these latest developments. Understanding if buying real estate truly fits one’s personal finances, focusing on employment and other innovative ways of increasing total monthly income, and living by a budget are all key since debt loads cannot be controlled unless the right balance of income and spending is achieved. But the other end of the debt problem entails smart decision-making regarding existing debt: set priorities based on your own behavioral tendencies, with a preference for mathematical optimization of debt paydown if it works with your profile.
Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.
