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Floridians Have Second Highest Credit Card Delinquency in U.S.

On Behalf of | Dec 2, 2010 | Credit Card Debt, Firm News

According to a quarterly analysis by TransUnion, Florida ranked second worst in the nation when it comes to the credit card delinquency rate. Almost 2 percent of Floridians are 90 days or more delinquent on at least one credit card bill. On the other hand, Florida ranked 35th on the average level of overall credit card debt, which is $5,070. Still, the level of credit card debt the average Floridian has is up just a hair over last year, when it was $5,068.

Nationwide, the credit card delinquency rate fell 9.8 percent in the third quarter over the second, and it was down 24.6 percent over this time last year. The average American’s level of credit card debt rose from $4,951 to $4,964 for the quarter, but is still down 11.54 percent over last year.

Are More People Cutting Up Their Credit Cards?

TransUnion believes that Americans are responding to unmanageable debt both by cutting up their credit cards and by declaring bankruptcy. The survey found that more than 8 million people have stopped actively using credit card accounts in the past year.

“This deleveraging is believed to be due, in part, to charge-offs in the higher-risk segments of the population, more conservative spending in the low-risk segments, and significant efforts by consumers across the board to maintain the health of their credit card relationships as a financial cushion,” the company said in a news release.

TransUnion also said that it expects the nationwide credit card delinquency rate to continue to fall for the remainder of the year.

The state with the highest level of delinquent credit card debt was Nevada, with 1.28 percent of residents behind on payments for at least one card. Alaska had the highest average level of credit card debt, with $7,159 in credit card debt per person.

The state with the lowest level of delinquency was North Dakota (.48 percent), and Iowa had the lowest level of credit card debt, with the average Iowan owing only $3,807.

Source: South Florida Business Journal, “Floridians No. 2 for credit card delinquency,” November 29, 2010

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