Top 10 Cities With the Most Debt
Debt knows no boundaries. It travels through the financial system at a moment’s notice and embraces consumers with open arms. Debt’s only true weakness is that there must be demand for it to exist. This was seen during the financial crisis, when deleveraging became a top priority for American households and debt levels declined. However, cities across the nation are increasing their liabilities once gain.
Old habits die hard, especially when they charge interest. A new analysis from Experian revealed that debt levels rose over the past four years in nineteen of the top twenty major U.S. metropolitan areas. In 2014, the average debt load per consumer increased 5 percent to $25,927, compared to $24,678 in 2010. Detroit residents had the least amount of debt on average at $23,604, and was the only city to post a decline. Other cities such as Los Angeles, Miami, and New York round out the bottom.
Other reports also indicate that debt is making a comeback. Earlier this year, the Federal Reserve reported that total household debt, which includes mortgages, student loans, credit cards, and auto loans, reached $11.52 trillion at the end of 2013, up $180 billion from the prior year. That was the first year-over-year gain in overall debt since 2008.
Let’s take a look at the ten most debt-ridden cities from Experian’s analysis, which is based on credit card debt, personal loans, auto loans, and student loans.