A new report by CreditCards.com ranked two Texas cities among the most debt-burdened cities in the country. According to the report, credit card holders in Dallas and San Antonio owe an average of around $4,900. Although the debt burdens in San Antonio and Dallas are about 10 percent higher than the national average, average incomes in these cities are average to low.
Credit card debt counselors often advise people to try to pay off 15 percent of their credit card balance each month. If the average San Antonio or Dallas resident paid off their credit card debt at this rate, it would take them 16 months to become debt-free, and they would end up paying almost $450 in interest. Residents of the least debt-burdened city, San Francisco, would pay an average of $234 in interest and get out of debt in nine months if they were on the same payment plan.
A senior analyst for CreditCards.com was unsure why Texas cities had higher credit card balances. He did note that San Antonio has a large military population, and service members tend to have higher balances on their credit cards. The report showed that residents of San Diego, another city with a large military presence, also had higher-than-average credit card balances.
Many people are not able to pay off their debt at the ideal rate of 15 percent each month because they do not bring in enough income. Those who have become overwhelmed by their debt burden may want to consider filing for bankruptcy. A lawyer may be able to help a client to decide if bankruptcy is the best option to eliminate debt.