Studies Show Floridians Getting A Handle On Their Debt
In Florida, credit card debt has been and remains a serious problem for many people in debt, and the recession caused a great deal of financial stress on people and their families, especially when it came to foreclosures. However, recent studies show that many Floridians were able to successfully manage their debt and cut down on delinquent payments. The studies demonstrate that with the proper help and strategies, it is possible to manage your debt in Florida.
Return of the Florida Consumer
In that regard, according to a recent study, many Floridians actually improved their credit card debt despite the national recession. Floridians formerly ranked below other states, averaging over $5,000 in credit card debt. However, according to the recent study by TransUnion, that number has now decreased by over $1,000, more than double the national improvement.
In other words, the recession may have squeezed Floridians into managing their debt. As a result, Floridians may be becoming confident, as suggested by the results of an even more recent report by another credit agency, Equifax. This report showed a rise in credit card debt in the last year, but although debt rose, delinquent payment decreased. Floridians once again outpaced the rest of the nation, showcasing one of the highest increases. The report showed decreases in delinquent payments for credit card debt generally, but also specifically for car loans and store-brand credit cards. Equifax officials noted that “We are not seeing unreasonable levels of credit. People are spending within their means.” One economist suggested that “the consumer is back.”
Other Explanations for the Changes
Other explanations are out there. For example, the increase in credit card debt in December could reflect the holiday season, which could show that Floridians have cash flow problems. Further, some commentators have linked the apparent debt-management improvement to Florida’s current mortgage challenges, and suggested that Floridians simply prioritized paying down credit card debt, and postponed their mortgage payments. In that regard, Florida has decreased the amount of mortgages in the state in about the same time frame, mostly due a spate of foreclosures that forced people out of the market.
It is important to note, however, that Floridians are improving. According to the TransUnion study, Florida homeowners have more than halved their delinquent mortgage payments.
If you are still struggling with debt, you should know that it is possible to fight debt with the proper strategies. A Miami bankruptcy and debt relief attorney at the Law Office of Julia Kefalinos, Attorney, P.A. can help you understand all your options, from bankruptcy to debt settlement or reduction. Call today for a consultation.