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Learning more about credit card debt balances

On Behalf of | Feb 13, 2018 | Bankruptcy |

Americans had a collective credit card debt balance of more than $1 trillion in 2017. This was according to data from the Federal Reserve. However, that debt isn’t necessarily spread evenly throughout the country. A survey looked to see which cities had the most debt as well as which cities had the highest debt burden. The survey listed the top 25 most populous cities in order of their average debt balance per resident. The data did not include Kentucky.

It found that the District of Columbia. had the highest average debt balance per resident. It also found that its residents had one of the lowest debt burdens amount cities included in the survey. This was because those living there had the highest median income of cities surveyed at $46,536. It would take someone there 14 months and cost $613 in interest to repay an average balance of $7,442.

Those living in Dallas-Fort Worth had the second-highest average balance in absolute terms and one of the highest burdens when it came to paying it off. Residents of that area owed an average of $7,171 and would need 19 months to pay it in full. This assumes that an individual put 15 percent of their gross monthly income toward that debt. It also assumes that the debt came with an interest rate of 13 percent.

Filing for bankruptcy may be ideal for individuals who are struggling to pay down credit card debt. A Chapter 7 filing may allow debts to be discharged within weeks with debtors potentially paying little or nothing to creditors. A Chapter 13 case allows debtors to reorganize their debts and pay them off in three or five years. many remaining unsecured debt balances may be discharged at the end of the repayment period.