You May Be In Debt But How Does Your State Rank In The National Average?

18-Aug-2011 Are you holding onto some credit card debt? It does not take long to build debt but it can take much longer to pay it off. It is not surprising that residents in some states are building more debt than others. But what states have the most debt?

A recent article from Yahoo! Finance reported that several states in the US are suffering with debt. Of all the states in the US California and Hawaii have the most debt. This is not great news however that it is paired with the fact that they are also making the biggest strides towards paying off that debt.

Debt has been decreasing; especially credit card debt and it can be credited to lenders. When the economy began to suffer creditors became more strict about how they gave money to and how much. This means that if you were unable to pay back a loan in the eyes of the bank, you probably weren't given the loan. In the past money was loaned more liberally with the assumption that the debtor would just figure out a way to pay.

The good news reported in this article by Yahoo! Finance is that progress is being made in paying down debts in America. In fact, 44 states have cut down on the money they owe on their auto and home loans as well as credit card debt. The states that have made the least progress paying down loans are Wisconsin, Montana, Louisiana, Iowa, North Dakota and Minnesota. It may be considered unfortunate that they have not made major efforts to pay down their debts but these states also didn't see as much of an upturn when the market was booming. 

Chicago bankruptcy lawyers will caution that they one type of debt that has increase everywhere are student loans. This is particularly concerning because student loans are one type of debt that cannot be discharged through chapter 7 or chapter 13 Chicago. Student loan debt is not a problem in a market where jobs are easy to find but when the job market is behind, student loans can become troubling and cause the debtor a lot of stress.

If you are struggling with debt and considering filing for chapter 13 or chapter 7 Chicago, speak with Chicago bankruptcy lawyers right away. Obtaining tips on cutting costs to decrease debt and increase your credit score is a great way to improve your financial profile.

Chang and Carlin
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.