Average Phoenix household has $12,000 in credit card debt, report says
PHOENIX — After adding $91.6 billion of debt in 2017, Americans owe more than $1 trillion in credit card debt for the first time in history.
According to a new study from WalletHub.com, the $91.6 billion increase ranks as the fifth highest spending spree in the past three decades, and the highest since the 2008 Recession.
The problem has taken a dramatic affect in Phoenix.
“The average household in Phoenix now has just under $12,000 in credit card debt,” WalletHub analyst Jill Gonzalez told KTAR News 92.3 FM.
Residents in Phoenix paid down more than $262 million of its $6.298 billion credit card bill in the first quarter of 2018. Not a very good ratio according to Gonzalez.
“Phoenix ranked in the 33rd percentile, so the 99th percentile would be the best. Obviously the 33rd is quite a ways down from there,” Gonzalez said.
On the other hand, Gilbert ranked in the 91st percentile for quarter one, paying off $52 million of its $1.256 billion credit card debt.
Gilbert was the highest ranked city in the state of Arizona.
Although no figures were compiled on what the debt was spent on, a WalletHub survey said that healthcare, housing and travel were ranked as the top three reasons worth going into debt for.
Gonzalez also said that a rise in federal interest rates could make it harder to pay down credit cards.
“The federal reserve is expected to jack up interest rates again, not only this month, but once more after this sometime throughout the year,” Gonzalez said.
KTAR News 92.3 FM’s Jeremy Foster contributed to this report.