Texans Experience Second-Highest Credit Card Debt Increase in the Country
A recent study conducted by WalletHub has revealed that households in Texas have some of the highest credit card debt in the United States. The data collected from April to June, also known as Quarter 2 of the year, shows that Texans had the second-highest increase in credit card debt across the country.
Jill Gonzalez, an analyst for WalletHub, explained that the study utilized data from the Federal Reserve and census numbers to gain a comprehensive understanding of the population’s financial situation. The average household debt in Texas currently stands at over $9,200.
Gonzalez further highlighted the alarming trend of increasing debt year after year. Although 2020 witnessed a decrease in debt due to people paying off their balances, subsequent years have seen a steady rise. She attributed this surge to various factors, including inflation and the Federal Reserve’s frequent rate hikes, which instantly contribute to the growth of credit card debt.
Todd Christensen, the education manager at Money Fit, a nonprofit organization dedicated to assisting individuals in overcoming credit card debt, emphasized the importance of halting the accumulation of debt. He advised people to stop digging themselves into a deeper financial hole.
Christensen acknowledged that many individuals incur debt simply to make ends meet. He encouraged them to recognize their overspending habits and prioritize necessities over wants, such as expensive phones or vacations. Setting up a spreadsheet to analyze expenses and develop a plan for making extra payments can help individuals regain control of their finances.
Moreover, Christensen advised seeking professional assistance for those struggling to pay their bills. He recommended reputable nonprofit credit consumer agencies like fcaa.org or nfcc.org, which offer reliable resources and guidance.
Texans must address their mounting credit card debt, which poses a significant financial burden. By adopting disciplined spending habits and seeking expert advice, individuals can work towards financial stability and alleviate the growing debt crisis.
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