How Hard Is It to Pay Off Credit Card Debt in Pennsylvania?
If you owe a lot of money to credit card companies, you have avoided the worst-case scenario. You are in a better financial position than you would be if all of your credit cards were maxed out and no one would lend to you. If you are making just slightly more than the minimum payments each month while your balances climb and hoping that you find a way to increase your income or reduce your expenses before you reach your credit limit, you are in the same boat as millions of other households across the United States. It is comforting to know that you are not alone, but this knowledge does not, by itself, get you any closer to becoming debt free. For help finding ways out of credit card debt and other types of consumer debt, contact a Philadelphia debt relief lawyer.
How Does Pennsylvania’s Credit Card Debt Problem Compare to Other States?
Credit card debt is a nationwide problem; the total amount that consumers in the United States owe to credit card companies is higher than it was before the COVID-19 pandemic. Meanwhile, some states are feeling the sting of credit card debt and its causes and effects more acutely than others. The percentage of consumers who are delinquent on their credit card debts, meaning that they have missed one or more monthly payments, is highest in the South and in Rust Belt states like Pennsylvania.
Here are some statistics showing how credit card debt problems in Pennsylvania compare to other states:
- The cost of living in Pennsylvania is 3.6 percent less than the national average.
- The median household income in Pennsylvania, adjusted for cost of living, is $40,260, which is slightly less than the national average of $40,983.
- The employment rate in Pennsylvania is slightly higher than the national average. 6 percent of adults in Pennsylvania have full-time jobs, compared to 64.1 nationwide, and the unemployment rate in Pennsylvania is 3.4 percent, which is lower than the national average of 3.8 percent.
- 5 percent of American households have delinquent credit card debt, compared to 3.4 percent in Pennsylvania.
In other words, despite a robust labor market and a slightly lower than average cost of living, many Pennsylvanians still struggle with credit card debt.
Strategies for Dealing With Credit Card Debt
Credit cards tend to have high interest rates. Therefore, a low interest debt consolidation loan could help you save money on interest if you use the principal of the loan to pay off your credit card debt. If you are confident that your shortage of cash flow is temporary, a credit card balance transfer could also save you money on interest. If old, maxed out credit cards are still following you around, you may be able to discharge the debts by filing for bankruptcy.
Contact Louis S. Schwartz About Debt Relief
A Philadelphia consumer law attorney can help you if you are struggling with credit card debt. Contact Louis S. Schwartz at CONSUMERLAWPA.com to set up a free, confidential consultation.