Equifax: Americans Still Owe Billions in Credit Card Debts

Many households still carry a heavy debt burden, according to Equifax (NYSE:EFX).

They found that in some cases many people owe up to 17 percent of their income to credit card companies alone.

The top 50 metropolitan statistical areas (MSAs) hardest hit by credit card debt, as a percentage of income owed in 2010, is clustered in six states across the country, Equifax found. They are Florida, North Carolina, Ohio, Texas, Washington and California. These states also have some of the highest total credit card balances for the country:

FL: $47,568,265,541
NC: $22,386,064,118
OH: $28,985,502,668
TX: $48,833,824,544
WA: $18,288,819,367
CA: $90,566,978,302

While total consumer debt (mortgage, auto, credit card, etc.) has declined 8.2 percent from its peak of $11.5 trillion in October of 2008, 54 million American households still owe more than $800 billion in debt to credit card companies alone, irrespective of other debts such as mortgages or students loans, Equifax reports.

Dianne Bernez, Equifax’s senior vice president for corporate communications, said, “The good news is we’re seeing Americans paying off their debts and becoming more fiscally fit.” She added, “However, the numbers show that while people’s intentions are good, Americans still have a lot of debt to tackle and often don’t know where to start.”

Equifax, along with financial expert and New York Times bestselling author David Bach, have launched the Debt Free Challenge, encouraging 1 million Americans to pay off $1 billion in debt.  www.debtfreechallenge.com

Bach, author of Debt Free for Life: The Finish Rich Plan for Financial Freedom,” says, “I would encourage people to look at these numbers and then take a good look at what their share is – a lot of people don’t actually know how much debt they’re in,” and “Only then can you make a plan of action to pay down your debt.”

Bach also says, “Pledging to get out of debt can really help people get started on their journey toward financial freedom – setting a goal helps you stick to your plan.” He adds, “And remember that you’re not alone – taking the pledge are your neighbors, co-workers and friends – this is doable and there are tools out there to help you.”

Debt Wise™ powered by Equifax is an online tool that uses the information already on your credit report to prioritize debts and help you set a plan of action to reach your Debt Freedom Day.

Debt Wise™ does not provide debt management advice, credit counseling, financial planning or counseling, and will not act as an intermediary between subscribers and their lenders/creditors.  http://www.debtwise.com