Americans Still Hold Billions In Credit Card Debt
Recent reports indicate charge offs and late payments to lenders continued to decline in 2010. However, a new report suggests many households still owe as much as 17 percent of their income to credit card companies.
California held the highest debt total in the nation, with more than $90 billion in unpaid borrowings. Texas and Florida rounded out the top three, respectively, major credit reporting agency Equifax reports.
Despite a high overall debt total in many states, consumers continued to cut their borrowing on mortgage and auto loans, the report says. Debt on these loans fell by 8.2 percent, down from a peak total of $11.5 trillion in 2008.
"Pledging to get out of debt can really help people get started on their journey toward financial freedom - setting a goal helps you stick to your plan," said financial expert and bestselling author David Bach. "And remember that you're not alone - taking the pledge are your neighbors, co-workers and friends - this is doable and there are tools out there to help you."
Still, some Americans may not be able to cut debt, as unemployment remains high. This in turn has lead many consumers to rely on credit cards spending to meet their monthly bill requirements.