Gregory Starkey, Attorney at Law

local
205.545.8251

toll free
866.706.3859

Let Me Help You Get Your Life Back on Track
Let Me Help You Get Your Life Back on Track

Alabama citizens' credit card debt decreases

Financial challenges are not considered a new concept conundrum in today's economy among many Alabama families. With increasing unemployment, which in turn decreases income, families across the country have had to work through hard times.

Amid financial struggles, many families have turned to credit cards. However once using credit cards were no longer an option, many families utilized debt relief options by filing for a bankruptcy. Credit cards can be extremely beneficial in a time of need, but too much credit card debt can cause serious problems.

Despite several years of average national credit debt rising, the average credit card debt in Alabama has fallen by 22 percent. This decrease brings Alabama to the top three states for lowest amount of credit card debt.

Even though Alabama has a low amount of credit card debt, the average credit rating among the state's residents has dropped, which has pushed Alabama into the bottom three states. Still, decreasing individual credit card debt is a great start to helping individuals and families escape creditors, possible creditor harassment and bankruptcy.

Credit card debt, along with other types of debt, can have a significant impact on one's credit rating. A credit rating can be lowered if debts are not paid on time, which can be likely if the amount of debt is extremely high. The lower the credit rating, the lower the credit score. With a lower credit score, it will be harder for an individual to get a good rate on future loans for housing, auto loans and other credit-based purchases. Further, if an individual has too much credit card debt, it can force him or her to go into bankruptcy.

With the amount of credit card debt decreasing, it will allow more families to escape the seemingly never-ending cycle of economic hardship. Clearing outstanding debt obligations and returning to a state of financial stability are ways to begin the process of healing damaged personal credit.

Source: Birmingham Business Journal, "Average credit card debt falls 22% in Alabama," Oct. 10, 2012

1 Comment

This post aptly states that having good credit can have a significant financial impact on what people pay for items over time. But the impact may be a bit overstated in society in general, as good financial decision making appears to be the most important.

Leave a comment
Comment Information