Credit Card Debt Rises While Credit Scores Fall

Students in Maryland carry the highest amount of average student loan debt in the country with $33,359, Time reported on October 21, 2011. Credit score and product site compared the amount of credit card, mortgage and student loan debt in each state, as well as each state’s average FICO score. While Maryland had a respectable average FICO score of 667, the Old Line State’s average mortgage debt of $240,084 was third highest behind only California and Hawaii.

According to Time, the average American’s FICO score was 663 for the third quarter, a drop of four points from the previous quarter. Furthermore, the average credit card debt rose to $6,513. “With back-to-school shopping and the upcoming holidays, credit card debt is starting to creep up — a trend that could continue with the new debit fees many banks are starting to implement,” CreditKarma CEO Ken Lin said in a press release. “Consumers may turn to their credit card more often to avoid the fees and rack up more credit card debt when they don’t pay in full each month as a result.”

If your credit card debt is going up while your credit score tumbles, a bankruptcy means test can be the starting point that allows you to reestablish credit. Maryland bankruptcy lawyer Kevin D. Judd can help you with your financial crisis by assisting you throughout a Chapter 13 or Chapter 7 bankruptcy process. Whether you need foreclosure help or have amassed too much credit card debt, contact our office today to set up a consultation that could be your fresh start.

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