High interest rates and high inflation are making it harder than ever to pay down credit card debt. American consumers started the year with over $1 trillion in outstanding credit card debt.
According to a recent study, the average U.S. household has over $8,900 in credit card debt, which is up 4.5 percent (4.5%) from last year. Consumers in certain cities seem to struggle more than others. This fact was recently documented in a study produced by personal finance website, WalletHub, listing which American cities had the least sustainable credit card debt.
In their study, WalletHub took data from major credit bureau, TransUnion, to calculate the cost and time that would be required to pay off the median card balances of more than 180 major U.S. cities as of October 2022. Those cities that showed it would take longer to pay off higher median credit card debt were rated at the top of their list of cities with the least-sustainable credit card debt. Their analysis included cards that carried a balance and excluded store credit cards. Additionally, WalletHub only considered the city proper in each case, leaving out the cities in the surrounding suburbs.
Four Florida cities were listed at the top of the list, showing that Floridians struggle with paying off their outstanding crediting card debt.
At the top of this list was Hialeah, Florida, where the median credit card debt was $2,458. The cost to pay off outstanding credit card balances was $1,961, and the time to payoff these debts was 92 months and one day. Miami, Florida, was second on the list with a median credit card debt of $2,898 and a payoff cost of $2,274. The study showed that it would take consumers in Miami 90 months and 23 days to pay off their credit card balances.
Two other Florida cities came in at fourth and fifth on the list. Port St. Lucie, Florida, was fourth, with a median credit card debt of $2,959 and payoff amount of $1,889. It would take consumers in Port St. Lucie 75 months and 22 days to pay off their credit card debts. Pembroke Pines, Florida, came in at fifth place with a median credit card debt of $3,409 and payoff amount of $2,162. For residents in this city, it will take 75 months and nine days to pay off the outstanding balance.
Tallahassee, Florida, was in the 11th spot with a median credit card debt of $2,844 and payoff amount of $1,680. It would take consumers 70 months and 21 days to pay off this balance. Fort Lauderdale also made this list, coming in at 15th place with a median credit card debt of $3,273 and a payoff amount of $1,822. According to their study, it would take consumers in Fort Lauderdale, 67 months and 1 day to pay off their outstanding balances.
Lastly, Cape Coral, Florida, was listed in the 18th spot while Jacksonville, Florida, was listed in the 25th spot on their list. Cape Coral showed a median credit card balance of $2,904, a payoff amount of $1,591, and a length to pay off the card of 66 months and three days, while Jacksonville showed a median credit card balance of $2,751, a payoff amount of $1,405, and a payoff timeline of 62 months and one day.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
