It was recently reported that the average American household carries $16,061 in credit card debt. Now, an in-depth study suggests that some areas of the country, particularly the southern states, are struggling with higher debts.
Focusing on debt levels across various states, the latest survey showed that Alaska topped the poll. Four of the so-called Sun Belt states make up the rest of the top five, including Florida, New Mexico, Texas, and Georgia. Calculations were also made to take into account both the average income and debt, revealing that the southern states have been harder hit because of the lower income levels in these regions.
In Alaska, the average salary is $35,552 per year. With an average credit card debt of $7,552, it would take 20 months to pay down the debt using 15 percent of earnings, including paying $992 in interest fees. With consumers in New Mexico and Georgia having lower average salaries of $26,244 and $30,284, respectively, it could take even longer to pay down their credit card debts, despite the average balances being lower ($5,615 and $5,953, respectively).
For those with debt, it is important not to ignore the problem. Instead, chip away at your credit card balance as much as you can, using a benchmark of 15 percent of your income per month, if possible.
If you want more credit, check out MoneyTips' list of credit card offers.
Photo ©Depositphotos.com/ByLove (Miss Sateerat Saiket)