The current economy climate is looking considerably better than it did even just 10 years ago. In the decade following the Great Recession, unemployment rates have hit a record low and borrowing by the average Florida consumer seems to be going strong. Still, delinquency rates for credit card debt and auto loans are on the rise for some people. Since Florida has the third highest rate for credit card debt, it could be a real problem in the state.
While the overall American economy is stronger than before, this has not necessarily translated into real-life improvements for many people. It is perhaps not surprising that credit card bills are one of the more common debts that people fall behind on, as there are approximately 470 million credit cards in the United States. The average household has not one, but nearly four cards.
With an average household income of $50,860 and an average credit debt of $7,819, Florida has a income-to-credit card debt ratio of 15.37 percent. Even though the unemployment rate is only about 5 percent, people are still struggling with this high level of debt. Delinquency rates for credit cards in the state are currently at 9.41 percent.
Average incomes and unemployment rates do not always paint full pictures of people’s day-to-day lives. The average person in Florida may be dealing with unexpected medical bills, a drop in income or other unexpected financial surprises that can impact one’s ability to make monthly credit card debt payments. As such, even those who feel as if they have a good job with a solid income may still need debt relief, which bankruptcy can provide.