Credit Cards

People in this state take the most time to pay off their credit cards

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Going big on those holiday purchases will cost you — especially if you’re in New Mexico.

Residents in the Land of Enchantment take 17 months to pay off an average credit card balance of $8,356, according to new data from CreditCards.com. Consumers in the state are the most heavily burdened with credit card debt, the personal finance site found.

CreditCards.com analyzed household income and debt data from the U.S. Census Bureau and Experian.
The size of your credit card balance isn’t the only factor in determining whether the debt is truly burdensome.

Annual household income also influences how speedily you can pay off what you owe, said Ted Rossman, industry analyst at CreditCards.com.

Indeed, the median household income in New Mexico is $47,169, the study found. CreditCards.com assumed that consumers would carve out 15% of their gross income to service the debt.

“We found that the places with the highest debt burdens were places where the average credit card debt was in the middle of the pack,” Rossman said. “The problem in New Mexico is that the income is so low.”...Read more>>

Source:-cnbc