Credit Card Debt Falls But Problems Remain
The mountain of national credit card debt may be shrinking, but with that, consumers are abandoning other payments.
A recent study by Experian revealed that credit card debt has fallen 5 percent or more in 48 cities in the U.S. over the past 12 months. While this may sound impressive overall, other statistics are lacking, WalletPop reported. Some of the municipalities with the largest drop in credit card debt are in areas that have been hurt badly by the housing crisis. Many of the people who are paying off debt may also be abandoning their mortgage payments.
The report revealed that Los Angeles, California, and New York City had the largest debt loss, but Experian believes that some of the drop can be blamed for consumers moving out of those areas to less expensive cities.
It is best to pay down debt as quickly as possible, Maxine Sweet, Experian's president of consumer education, told the news source. She added that if a consumer is expecting a tax refund soon, it is wise to put it toward outstanding debt.
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