Alaskans lead nation in credit card debt
Published Wednesday, July 30, 2008
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Stumble It!NEW YORK -- Alaska leads all states with the highest median credit card debt of $3,384, according to a study released Wednesday.
New Hampshire came in second with a median of $2,109 in debt followed by Connecticut with $2,094, according to the study by Americans for Fairness in Lending. The study was based on 2006 year-end information from TransUnion, one of the nation's credit bureaus.
Americans for Fairness in Lending, which advocates for stricter credit card regulations, said the amounts reported were likely lower than other estimates since they were for individuals, rather than households. The figures were also for the median borrower, which is the one in the middle of the list, rather than the average of all borrowers.
The states with the lowest median credit card debt- Mississippi, Iowa, West Virginia - had median amounts of $1,098, $1,135 and $1,237, respectively.
Rounding out the top 10 list of states with highest median debt were Maryland, Colorado, Nevada, Virginia, Delaware, Washington and Massachusetts, in that order.
The study was released as the Federal Reserve considers adopting regulations to stop card companies from a range of usurious practices.
"Unfair practices by credit card companies are fueling these high debt levels," Jim Campen, executive director of Americans for Fairness in Lending, said in a news release. "Consumers are victims of a range of abuses such as doubling and tripling interest rates, applying higher interest rates retroactively to outstanding balances, imposing exorbitant penalty fees, and requiring binding mandatory arbitration clauses."
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Woohoo #1 in presidents physical fitness test, obesity, STD's (non-hiv/aids) and credit card debt...go Alaska!
Please, consumers are NOT victims of credit card companies abuses. Did they put a gun to your head and force you to use their cards, no. If you choose to use a card with absurd interest rates and get behind because you have to keep buying crap, it is your own fault, NOT the credit card company. If you don't have the money, then DON'T spend it! Again, people in Alaska living beyond their means.
And then they cry to mommy govt to help them out.
Poor Americans, always victimized...boohoo! I see all you overweight folks, smokers, cell phone users, monster truck drivers, and McMansion owners out there. Maybe reign in your spending habits, huh? Then you might not need all those energy rebate checks, eh?
What the credit companies do that lacks integrity is change your interest rate whenever they feel like it. In other words, they break their word. You have to pay careful attention to catch the fine print, then immediately call and cancel your card to freeze the old rate. A lot of people who didn't know this are having to pay much higher interest than they signed up for. People need to reign in their spending habits AND credit card companies must me made to keep their end of the deal.
don't forget we have the highest gas prices in the nation too!!
I can't help but think this also has something to do with Alaskans paying fifty cents or more than the national average for gas. It's too bad they took this survey in 2006 when gas was still under $4.00 a gallon. Now Alaskans pay much much higher prices for fuel than second place New Hampshire. Our average credit card debt is probably closer to $5,000 per person now.
Will we ever see $3.00 a gallon again? Probably not. Will we have a natural gas pipeline built in 5 years? Don't count on it. Do the credit card companies care if you can't afford gas? Of course not. Are any of our elected officials gonna do anything about it? Not yet they haven't...
I have around $19,000 and its my own damn fault for wanting things right away.
I'll be paying off the rest of my credit card debt in the next couple of months and it was nobody else's fault but mine that I've spent the last 5 years digging my way out. I think it's unethical that the credit card companies can change your interest rate on 15 days notice for no reason. They intentionally go out of their way to make it ridiculously easy to get hit with a late fee or other fee. But I'm the one that tried living beyond my means. It will be a good day when that last balance finally hits zero and I can starting actually SAVING the money.
Wait a minute - the article is CLEARLY about ALASKANS being the highest in debt - the rest of the country seems to be fine. Yet somehow people draw the conclusion that it is the credit card companies who are evil. The point of the article was that Alaskans, and Alaskans alone lead the country in debt. If the credit card companies are so corrupt, wouldn't you think that the REST of the country would also be as affected and also be swimming in debt? They're not, according to the article above. Read it again... We beat out NH and Conn. and those people make WAY more money than most in Alaska. They just know how to manage it better.
Hello! Alaskans are figuring in their PFD's and future energy rebates.
I find all this very interesting, I've had credit for years and have NEVER, EVER had any credit card company go against the fine print. And when anything changes, they send me a letter ahead of time to let me know. If I don't agree with the change, I make a change and drop the card. Simple enough.
America, nation of whiners.
It would be interesting to know how much of that debt is in the form of Utility bills (heating oil, nat gas, propane and electricity) and of course gasoline or diesel at the pump. It is like 200-400 miles to go anywhere in Alaska to have fun! I know quite a few folks that got through last winter on plastic and they are hoping to play catch up with Dividends and whatever rebates they issue this fall. The problem is that they will then be charging this winters utility bills on plastic once again.....its a vicious circle!
Why would anyone pay utilities on a credit card? Or gasoline. Ever hear of DEBIT cards? Cash people! If you don't have it, then don't spend it. I would never consider adding to those already expensive items, why the heck do other folks? You LIKE paying more? Vicious cycle indeed!
Budgeting - something not taught in our school system and it shows.
Thanx Mom and Dad! You taught ME how to balance my checkbook!
Its called Survival Mr. Green, not everyone in Alaska or in the nation has their finances in order as you do. It is stupid as heck to put a $600 heating oil bill on plastic, but if you dont have an extra $600 what choice do you have, not fill the heating oil tank? Same goes for GVEA bills. I dont even know if you live in Fairbanks but you do realize that heating oil doubled from the start of winter to the end of winter, and the fuel surcharge and cost for eletricity doubled as well from the start of winter to the end of winter. No ones pay was doubled from the start of winter to the end of winter as far as I have heard. The sad truth is that many americans live from payday to payday, whether its because they just dont make enough money or that they are not responsible or intelligent enough to budget. These outrageous increases in utility costs blind sided a lot of folks last winter and even this summer. Living in Fairbanks Alaska and having a household income of $50,000 makes you borderline poverty as opposed to $50,000 going a pretty good ways in many other states. I'd say that the average costs of renting a house or owning a house in the FNSB if you combine rent/mortagage plus utilities would be a monthly cost of about $1600-$2200 and thats not for living in a nice place, thats a crappy to average place.
I pay for nearly everything with a credit card. I then pay it off every paycheck.
End result? I earn a whole bunch of frequent flyer miles and have no debt.
Henry: ditto.
I wonder how much of the state's apparently high credit card debt is actually a result of people earning frequent flier miles and paying off their balance monthly.
I blame Alaska Airlines. If we all weren't trying to accumulate miles to fly somewhere warm, we'd be way down the list of credit card spenders. Just when you think you can resist, somebody offers triple miles, or "FREE MILES". A person can only be expected to resist so much, then "Powee!", ya gotta spend.
This arcticle does not really tell you to much. This is median debt level not average and not household. Alaska has a lot of people making pretty good money. Is this to much debt? I owe 4k on 1 card, at 2.99% for life, 3K@3.99% for life, 12k@1.99% for life. Is that to much? My payment minimum is under $250, I pay much more each month. The 12k paid off a vehicle loan at 6.5%. We live in a 1 room log cabin, 2 mortgages, taxes and insurance $550 a month. just replaced all fuel oil used last winter, 97 gallons. You make choices, you live with your choices, a blanket statement never covers everyone.
Alaskacub - well then I must be quite poor since I make much less than $50,000 a year. My girlfriend and I split a cabin at only 500$/mo rent which only costs maybe $200/mo to heat. It's 6 miles from town so we also drive. It's not super tiny, just ok on insulation. So my housing is only $400 to $500 each month, with electricity(split 2 ways).
And I do live in Fairbanks, so I also pay high gas prices and food costs. I have ONE credit card with a good interest rate that I made them drop when I threatened to cut it up.
Sorry I that I know how to budget. And I'm sorry that I understand that credit is a predatory beast I avoided most of my life. Sorry that I don't chase the carrot of the lifestyles of the rich and famous. Sorry I chose not to have kids.
And it just so happens I work retail here in the winters and I sell a lot of you all that extra crap your all putting on your plastic. I know why most people are in debt, but you can't blame big credit card companies when the govt keeps printing money out its proverbial a** causing the buck you made yesterday to become worthless. Sorry.
I say blame big govt and let capitalism do it's job. You need more money, get out there and make it, no one is stopping you.
Anyone out there remember a time when it was illegal to charge an interest rate above 24% ? Any higher was considered loan sharking. It seems that law got repealed or something. Someone out there took the reigns off the loan institutions and we're the ones getting fried.
It's very hard not to get into bad debts, when creditors just throw the cards at you. One company sent me a check for $2,500 and loan terms on the back. 19% and payments of $160/mo. If you're hurting for heating oil, taxes and other expenses, it's pretty impossible NOT to fall prey to these companies.
Here's a two rules I've learned that keep me clear.
Only keep 1 credit card.
Keep the limit on it low enough you can pay it off in a month, 2 tops. Paying it off as you go means no interest paid. My CC raised my limit about $2,000 more without me asking. I called them up and told them to reduce it back down and told them to make a note to NEVER raise my limit without my asking.
Use online banking and make several payments a month. You'll never get any late payments that will jack you interest rates up.
MR. Green: "I see all you overweight folks, smokers, cell phone users, monster truck drivers, and McMansion owners out there. Maybe reign in your spending habits, huh?"
OK.. I can see how smokers, cell phone users, moster truck drivers and McMansion owners overspend ( or not budget in their "wants")but to say that overweight people overspend!!! Come on! Yea, maybe some eat out alot.. but what about all the skinny folks that eat out 24/7. As someone who is slightly overweight I find that comment very rude and insulting. I eat out maybe twice a month. Otherwise I spend about $450 a month on groceries for a family of three. I've always been slightly bigger... even with exercise! So take your insults elsewhere!!!!!
I think I’m going to charge my Newspaper payment to MasterCard, just before I file Chapter 11…
(Grins)
once_upon_a_time - would it help you to know that I'm a little overweight too? So is my girlfriend. We're Americans. Maybe you would prefer the word obese, or morbidly obese? In fact, Alaska leads the nation in obesity I believe.
Correlation between being in debt and being overweight, maybe? Maybe not. Correlation between also having a pretty high smoking rate in Alaska and leading the nation in debt? Maybe.
You missed my point - which was that Americans are NOT victims. And we cannot complain about actually having it as good as we do, hence people being overweight, and being able to afford all those other things.
You saw insults where there were none. Calm down.
And all those skinny folks are blowing their money too.
I once ran up a HUGE credit card debt. Why? Because I was 18, in the military, and felt 'indestructible'. I paid for that for YEARS; it is no accident that credit companies love to advertise at colleges and military bases. They know that's where to find inexperienced kids with alot of spending zeal..... Oh, and that was in the late '80s; nowdays kids like I was then are getting suckered a thousand times worse. I say, bring back usury laws and retro-actively put credit card hawkers in jail (preferably one with alot of tough guys). Same goes for 'pay-day loan' jerks.
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