A recent report has just announced that Iowa residents have the lowest average credit card debt in the United States. This fascinating finding leaves many individuals and families around the nation struggling with credit card debt and bad credit asking “How do they do it?”
According to the report, Chicago-based firm Trans Union conducted its regularly quarterly analysis of trends in the credit card industry. Their findings show that Iowans had average credit card debt of $3,807 in the third quarter, up slightly from $3,792 in the second quarter of 2010 but still the lowest in the nation. Iowa is closely followed by North Dakota and South Dakota who rank second and third in the nation for the lowest average credit card debt per household.
Other interesting findings in the Trans Union third quarter analysis include the fact that Alaskans rank the highest in the nation when it comes to average household credit card debt, with a whopping average per household of $7,159. Hawaii and North Carolina were found to have the second and third highest average household credit card debt by state with averages of $5,716 and $5,640 respectively.
Despite the fact the average American has a few thousand dollars in credit card debt and a mediocre credit score, Trans Union found that more than 8 million consumers stopped actively using bank issued, general purpose credit cards over the past year, a finding that many analysts are taking as a sign of overall more conservative spending habits of consumers as a result of the recent trying economic times.
Ezra Becker, Vice President of research and consulting in Trans Union’s financial services business unit, noted that “The vast majority of the consumers who do not possess or have stopped using credit cards continue to have and use other forms of revolving and installment credit, and of course still need to pay for necessities.”
Credit Industry Professionals and financial analysts await future quarterly credit card industry trend reports in order to track whether or not consumer behavior, consumer credit, and consumer debt will be changed for the long term as a result of the recession. Currently, Americans in each of the fifty states continue to seek the assistance credit repair specialists to help repair damage done to their credit through debt, default, and other uncontrollable circumstances.