TransUnion reports that North Carolina has the highest credit card debt in the US. For many years now, financial advisors validate the report; they say that North Carolina has long held the reputation as the highest debt-incurring state in the country.
Several advisors add that even before the onset of the 1998 economic recession, North Carolina card holders are already using their credits to purchase their household needs more often than their counterparts in other states.
Economists offer their insights on North Carolina as a highest ranked debtor among the different states in the country. They say that aside from the high unemployment rate in the state, North Carolina`s income is mostly generated by coastal rental vacation properties, the fishing industry, and real estate and construction. All of these industries have suffered from the economic downturn, which has caused lay-offs contributing to unemployment, more people resorting to debt reliefs.
North Carolina suffered the most when vacationing Americans had had to cut back on their travel, and luxury spending as a result of the economic recession. North Carolina is a prime tourist destination in the country and when economic conditions affect tourism, North Carolina is the first state affected, economists add.
With credit card holders in the state unable to get jobs, a lot of North Carolinians have used their credit cards more often during the recession and in the process, incurred more debts. An average credit card debt of 5,640 dollars per person had been indicated in TransUnion`s North Carolina debt report albeit all states are experiencing the declining credit card spending.
Despite the news, financial analysts are still quick to point out that North Carolinians are still responsible enough to cope with their individual debt issues. In fact, TransUnion also notes that delinquent payers in the state comprise less than one percent of those who have incurred debts in the past. Extremely late payments, which qualify as such after 90 days from the deadline, have also been reduced significantly in North Carolina, financial advisors said.
Moreover, economists argue that there are positive national trends, which encourage more states to take part in the effort. For three consecutive quarters now, TransUnion released data on a continuously decreasing credit card delinquency rate all over the country.
Reasons offered for the positive trend include solved bankruptcies, consumers using cash rather than credit in their various purchases, and hardest of all obs regenerated.