5 Cities with the Most Credit Card Debt

5 Cities with the Most Credit Card Debt

By Suelain Moy

Why is the Lone Star State racking up so much debt? Its two largest cities—Dallas and Houston/Fort Worth make the list of the cities with the most credit card debt, and San Antonio comes in as No. 1.

The new study from CreditCards.com used credit report data from Experian to compare the average credit card debt in the 25 largest U.S. metro areas with each area’s median income. It assumed that 15 percent of a person's monthly income would be spent on paying down credit card debt.

The analysis claims it would take San Antonio residents with median incomes of $27,491 a full 16 months to pay off an average of $4,880, making monthly payments of $344 a month. By comparison, a resident of San Francisco making $42,613 a year would pay off $4,393 in credit card debt with nine monthly payments of $533 per month.

The cities with the highest credit card debt burdens were:

  1. San Antonio
  2. Dallas/Fort Worth
  3. Atlanta
  4. Miami/Fort Lauderdale
  5. Houston

Related: 5 Reasons to Pay Off Your Credit Card Debt Now

The metro areas with the highest debt don’t necessarily have the highest debt burdens when adjusted for income. For example, Washington, D.C. has the nation’s highest average credit card debt at $5,046, but since it also has the highest median income in the nation, its debt burden is lower. By applying 15 percent of their paychecks, residents can pay off that debt in 10 months.

The cities with the lowest credit card debt burdens were:

  1. New York City
  2. Minneapolis/St. Paul
  3. Washington, D.C.
  4. Boston
  5. San Francisco/Oakland/San Jose

Matt Schulz, senior industry analyst at CreditCards.com, points out that there isn’t much difference between the city with the highest credit card debt, Washington, D.C. ($5,046), and the city with the lowest credit card debt, the Riverside-San Bernardino area ($4,137), but there is a big difference in income. A higher income means that debts can be paid off more quickly. “It really is all about earnings,” Schulz says. “People are using their credit cards whether they live in the biggest city in the country or they live in the 25th biggest city in the country.”

While most folks won’t be able to increase their income that dramatically, there are still steps they can take to make sure they’re tackling their credit card debt in the most effective way possible.

Related: How to Defuse Exploding Consumer Credit Debt

His advice to consumers? “Absolutely, positively pay more than the minimum on your credit card balance every month.” And the next best thing? “If you can’t pay the full balance, then you have to pay off more than the minimum.”

Schulz also recommends calling the credit card issuer and asking if you can get better terms. “It’s certainly worth a call,” says Schulz. “We did a study last year that showed that 65 percent of people who asked for a lower interest rate got a lower APR.” The same study said that 86 percent of people who asked for a waiver of a late payment fee were successful in getting the charge removed.

Top Reads from The Fiscal Times:

The $20 million ‘Boondoggle That Won’t Die’ Finally Gets Zapped

West Virginia
REUTERS/Jim Urquhart
By Eric Pianin

The House on Wednesday night voted 252 to 179 to wipe out a $20 million-a-year sop to Pennsylvania’s struggling anthracite coal industry that critics had tagged “the boondoggle that just won’t die. 

As The Fiscal Times reported earlier this week, the Defense Department has been required every year to ship 5,000 to 9,000 tons of coal mined from the rugged hills of Tamaqua in northeast Pennsylvania to the small town of Kaiserslauntern in southwestern Germany to be used by a local utility to heat a large U.S. military maintenance and repair installation.

The provision, for decades tucked away in the massive defense appropriations bill, was the remnant of a half-century old taxpayer rip-off that the Defense Department has been trying to get rid of for years. 

Related: The $20 Million Political Boondoggle That Just Won’t Die 

“For decades, the Department of Defense has urged Congress to remove this earmark and allow the use of cheaper fuel to power its military bases. Today we finally achieve that … saving taxpayers millions of dollars each year,” said Rep. Jared Huffman (D-CA), who co-sponsored an amendment with Rep. Tom McClintock (R-CA) to eliminate the benefit to the Pennsylvania coal industry. 

“The passage of this amendment is proof-positive that Republicans and Democrats can work together to cut wasteful spending while protecting the environment,” he added. “It’s about time we stopped burning dirty coal—and taxpayer dollars—to power this military base.”

End Game for the $20 Million 'Boondoggle That Won't Die'?

Spencer Platt/Getty Images
By Eric Pianin

It has been called “the boondoggle that won’t die,” a decades’ old provision within the massive defense appropriations bill that requires a large U.S. Air Force and Army base 4,000 miles away in Germany to heat its facilities with anthracite coal mined in northeast Pennsylvania.

Although the utility at the military base in the small town of Kaiserslauntern in southwest Germany could readily purchase cheaper domestic coal or natural gas to fire its boilers, a legislative mandate dating back to the post-World War II era requires it to use 5,000 to 9,000 tons of Pennsylvania coal shipped overseas. Since 1972 each Department of Defense Appropriations Act has included an earmark requiring the Pentagon to purchase this coal.

 Related: The $20 Million Political Boondoggle That Just Won’t Die

Taxpayers for Common Sense and about a half dozen other government watchdog groups have railed against the provision, which costs about $20 million a year, as one of the worst examples of waste in the budget. And late on Wednesday the House was scheduled to consider an amendment to the fiscal 2016 defense appropriations bill to finally knock it out.

Two Californians -- Democratic Rep. Jared Huffman and Republican Rep. Tom McClintock – have co-sponsored an amendment that would finally eliminate the resilient sop to Pennsylvania’s long-withering coal industry.

“It’s about time we stopped burning dirty coal – and taxpayer dollars – to power this military base,” Huffman said in a statement.

4 Signs It’s a Sellers’ Market in Real Estate Right Now

iStockphoto
By Beth Braverman

It’s a great time to be a home seller.

After years of dealing with hesitant buyers and disappointing home values, those with homes on the market are enjoying the benefits of a true sellers’ market in most regions of the country.

Home prices in April increased nearly 7 percent from the previous year, according to CoreLogic. And a survey from Coldwell Banker released today list four reasons sellers are sitting prettier:

1. Homes are selling even faster than in the pre-recession years. More than a quarter (28 percent) of today’s sellers were able to sell their home in less than two weeks. By comparison, only 19 percent of homes sold in that time frame in 2006-2007. 

Related: 9 Real Estate Trends to Watch in 2015 

2. The bidding war is back. Nearly half (47 percent) of today’s sellers are reporting receiving multiple offers on their home, up from just 40 percent from 2010-2013.

3. Homes are selling for more than the list price. Those bidding wars are pushing the sales price of home past the asking price. Of today’s sellers surveyed, 27 percent said they had sold their home for more than the list price. During the recession, just 14 percent of sellers reported doing so.

4. Sellers no longer feel pressure to take the first offer received. Less than half of today’s sellers take the first offer they receive, down from nearly 60 percent during the recession and in the early years of the recovery.

Sick, Uninsured and Charged 10 Times the Cost of Hospital Care

iStockphoto
By Millie Dent

A pack of for-profit hospitals are taking too many liberties with their for-profit names. A new study by Health Affairs found 50 hospitals in the U.S. have markups over 10 times the actual cost of care. The data was found using 2012 Medicare cost reports.

At the top of the list is North Okaloosa Medical Center, located about an hour outside of Pensacola, Fla. The hospital was found to charge uninsured patients 12.6 times the actual cost of patient care. A typical hospital charges 3.4 times the cost of patient care.  

The largest numbers of the hospitals on the list – 20 – are in Florida. Of the 50, 49 are for-profit and 46 are owned by for-profit hospital systems. One for-profit hospital system, Community Health Systems, owns and operates 25 of the hospitals on the list. Hospital Corporation of America operates 14 others.

Related: If SCOTUS Rule Against Obamacare, Health Care Costs Will Soar

Uninsured individuals are commonly asked to pay the full amount, unaware they are being scammed. The markups can lead to personal bankruptcy or the avoidance of necessary medical attention.

"The main causes of these extremely high markups are a lack of price transparency and negotiating power by uninsured patients, out-of network patients, casualty and workers' compensation insurers and even in-network insurers," the study reads. "Federal and state policymakers need to recognize the extent of hospital markups and consider policy solutions to contain them." 

Most astounding of all, these markups are not illegal. Maryland and West Virginia are the only states with laws limiting hospital fees.

Researchers offered solutions in the study, including limitations on the charge-to-cost ratio, mandated price disclosure to regulate the markups or some form of all-payer rate setting. 

Those Record Job Openings Weren’t All for Burger Flippers

FILE PHOTO: Job seekers stand in a room of prospective employers at a career fair in New York City, October 24, 2012.   REUTERS/Mike Segar
Mike Segar
By Millie Dent

Not only did job openings increase to 5.4 million in April, the highest number from the Labor department in 15 years, but the quality of the jobs was impressive, too. The openings included positions in finance (+13,000) and in architectural and engineering services (+5,000).

Overall, service-sector job growth outpaced gains made last year. The majority of jobs were in professional business services (+63,000), leisure and hospitality (+57,000) and health care (+47,000). Employment in retail also edged up (+32,000), as well as in construction (+17,000). The biggest increase in vacancies was in the West, but businesses across the nation are looking for new hires.

Related: 10 Best Cities for Job Seekers

Mining, logging and oil and gas drilling all posted decreases. Employment in those industries increased by 41,000 in 2014, but the striking decline in prices for oil and other commodities has taken a toll, with employment dropping by 68,000 thus far.

In another reassuring sign, unemployment has fallen to 5.5% from 6.3% at this time last year.