June 1, 2009
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News: CC Debt Worst Cities in U.S.
During the past couple of years, the nation has dealt with some of the most financially difficult times and highest numbers of unemployment since the great depression. Many Americans have been living beyond their means and using their credit cards to fund a lavish life style. Today, many are using them just to meet their family's every day needs. Statistics are showing that American's have tightened up their belts; however, experts are not optimistic that consumers will continue to be this frugal once the credit crunch lightens up. The Federal Reserve reports that consumer overall debt fell by $11.1 billion in March while credit card debt fell by $5.4 billion. It appears there are some cities that have a higher than average debt and will have a more difficult time climbing out of the hole. ABC News reported on the debt levels of U.S. cities; at the top of the list is Miami, Florida with a credit card debt of 22.61% of their income. For 2009, Miami has experienced a 12% decrease in hotel occupancy, an 8.5% unemployment rate, and a 9% foreclosure rate.
Miami was not the only Florida city on the high end of the list; Tampa has a credit card debt of 17.1% of their income; Jacksonville is at 16.38% of their income; and Orlando is at 16.37% of their income. Los Angeles is also one of the highest with a debt ratio at 16.81% of their income. Other cities that scored a high debt rate were Las Vegas, NV and Riverside, California. There are, however, some cities in the U.S. who have maintained a low balance of credit card debt to income ratio. Austin, TX is at a low of 14.12%; Indianapolis is at 13.63%; Charlotte, NC is at 14.33%; and Cleveland, OH is at 14.45%.
Some analysts believe Americans have had a wakeup call and have learned a tuff lesson in managing credit card debt. Still others believe they will continue to maintain a carefree spending attitude. Certainly these numbers indicate that Americans have been living above their means and have only moderately adjusted their spending habits.