Best Debt Companys

166 Companies 2,767 Real Customer Reviews

Debt by Numbers

Posted By:  |  June 13, 2016  |  0 Comment(s)

Money stacks graph. One hundred dollars

For a variety of reasons, average household and national debt is on the rise. Growing unemployment rates and staggering income wages can’t keep up with the rising living, medical, transportation, and food costs.

It appears that millennials and people over the age of 74 typically have the least amount of credit card debt. ValuePenguin predicts this is because these demographics are least likely to own a credit card.

Average Household Debt

Cost of living family.

Credit card debt is skyrocketing with significant student loan, personal, and auto costs. According to a Survey of Consumer Finances by the U.S. Federal Reserve, as of May 2016, the average U.S. household (everyone included), had $5,700 in credit card debt. The average for balance-carrying households had $16,048 in credit card debt. In 2010, the average balance carrying household had only $15,024. In 2011, things took a slight dip to $14,915. When it comes to how many people have credit card debt, Americans have 52% more debt today than they did a decade ago.

Nationwide Debt

United States national debt and budget deficit financial crisis

Looking at nationwide debt, the numbers grow much larger. ValuePenguin states that as of May 2016, the total outstanding U.S. consumer debt was $3.4 trillion. The total revolving debt was $929 billion.

The Future Of U.S. Debt

girl-piggy-bank

As far as improvement goes, the future isn’t looking bright. According to Fixthedebt, the nation’s debt load is predicted to increase by almost $8 trillion across the next decade. In fact, compared to other countries, the United States takes the cake for having the most debt.

As one can see, Alaska is an outlier on the list. This could be because of Alaska’s higher living costs and geographic location. On average, the Northeast and West Coast have the highest credit card debt. It is not hard to see that credit card debt is definitely on the rise.

Visitors to BestCompany.com

Average Debt of Visitors to BestCompany.com (1)

We conducted an independent survey of visitors to BestCompany.com to determine just how much debt our visitors our dealing with. Not surprisingly, preliminary results from our survey adhered to a Bell curve, with the majority of the 135 individuals polled reporting debt between $25,000 and $50,000.

Looking At The States

On average only 35% of credit card holders pay their full monthly balance, and 38.1% of all households carry some kind of credit card debt.

Below is a list of each state’s average credit card debt:

State Avg. Credit Card Debt State Avg. Credit Card Debt
Alabama $5,548 Montana $5,283
Alaska $7,706 Nebraska $5,647
Arizona $5,673 Nevada $5,715
Arkansas $5,317 New Hampshire $5,939
California $5,769 New Jersey $6,013
Colorado $6,323 New Mexico $5,514
Connecticut $6,494 New York $6,390
Delaware $6,056 North Carolina $5,596
District of Columbia $6,580 North Dakota $4,932
Florida $5,754 Ohio $5,583
Georgia $5,800 Oklahoma $5,728
Hawaii $6,139 Oregon $5,769
Idaho $5,555 Pennsylvania $5,646
Illinois $5,935 Rhode Island $5,455
Indiana $5,288 South Carolina $5,653
Iowa $4,833 South Dakota $4,851
Kansas $5,647 Tennessee $5,492
Kentucky $5,070 Texas $5,960
Louisiana $5,408 Utah $5,532
Maine $5,059 Vermont $5,781
Maryland $6,448 Virginia $6,520
Massachusetts $5,672 Washington $6,241
Michigan $5,079 West Virginia $5,123
Minnesota $5,565 Wisconsin $5,142
Mississippi $5,198 Wyoming $5,716
Missouri $5,431
Sources:

http://www.fixthedebt.org/about-the-debt
http://kdvr.com/2016/06/08/colorado-among-top-10-states-where-people-have-most-credit-card-debt/
http://www.valuepenguin.com/average-credit-card-debt#by-region

Next Post: Top 5 Reasons People Find Themselves in Debt ->

Poll

  • How important is it to you for a debt consolidation company to offer financial education resources?
  • Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
  • Negotiates with your creditors on your behalf.
  • Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
  • Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
  • Combines all your debts and creditors into one monthly payment.
  • Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
  • You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
  • Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
  • Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
  • Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
  • Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
  • Borrowers can receive funds from their loan within only a few days.

Recently Reviewed:

Trending Blog Post:

Want us to review a company?

If there is a debt company that you don't see on our site, and would like us to review, please contact us.

Real Reviews (yes they’re real)

With so many debt relief companies out there, and a lack of sites willing to bring you the HONEST breakdowns of each company, what source can you turn to for the real information you can trust?

We are dedicated to bringing the truth out, and rank debt relief companies as they should be. Through our investigation, and experience with each company, we rank each company, and bring you our honest, unbiased opinion. We also include authentic user reviews by past customers of each company that are moderated and verified.

Like many sites, we are compensated through affiliate relationships with each company we review, however all of our rankings are based on our 11-Point Ranking Criteria.

All reviews are subject to moderation and approval. Any reviews that may resemble false information, or competitors of another company will need to be verified by our staff before being approved and published. We reserve the right to approve or deny any reviews left on this site.