Along with this, banks continued to tighten their lending limits and reduce the amount of credit available on credit cards for many existing customers.
In 2010 the amount of debt consumers owed eased after slipping by 7% during that year. However, it is being anticipated that this positive trend might not last very long. The economy is looking to rebound, and as a result debt is likely to increase as well according to experts. The major impetus behind this will be the loosening of credit requirements. According to Ken Lin, the CEO of CreditKarma, America is currently at the bottom of the debt trend.
Here is a look at the debt situations in some U.S. states:
- Wisconsin consumers had the lowest average credit card debt ($5,062) in 2011.
- Mississippi and Alabama recorded the largest balance declines - residents in those states reduced their balances by 23% and 16% respectively.
- Alaska had the biggest average consumer debt ($7,937) - closely followed by New Hampshire and Connecticut.
- The national average for mortgage debt remained steady at $173,876.
- The most mortgage debt was carried by Californians ($313,749 per person).
- West Virginia had the lowest average mortgage debt at $104,279.
- Mortgage debt rose 12% in South Dakota and dropped 6% in Nevada.
- The only debt type that increased was auto loan debt. That rose by 2% to an average of $15,504. The biggest rise was seen in Alabama, where auto debt rose by 30% to an average of $20,996.
About the author:
Rick Murphy is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. He holds his expertise in the Debt industry and has made significant contribution through his various articles. To get debt related help visit: debtconsolidationcare.com/debt-settlement.html
