According to recent reports, the fear of incurring large debts or developing bad credit during these uncertain economic times is causing many Americans to keep their credit cards in their wallets. In fact, these same reports show that the average credit card debt in the U.S. declined by 11 percent in 2011, continuing a downward trend.

The website Credit Karma recently conducted a survey of over 300,000 users, which revealed that from 2010 to 2011 the average credit card balance in America declined from $7,404 to $6,576. As previously stated, this continued a trend from 2009 to 2010, in which the average credit card balance decreased by as much as seven percent.

Here, Credit Karma researchers attribute two factors to the two-year reduction in credit card debt:

  • Banks are extending less credit to consumers and reducing the credit limits of current customers
  • Americans are still uncertain about the economy and therefore spending less

Interestingly enough, however, Credit Karma researchers also believe that this trend will not continue because the economy is poised to rebound somewhat in 2012, meaning consumers will spend more and lenders will ease credit restrictions.

"I believe we are just about at the bottom of the debt trend," said Ken Lin, Credit Karma CEO.

Some of the other notable findings by Credit Karma include:

  • Alaska residents had the highest average credit card debt with $7,937
  • Wisconsin residents had the lowest average credit card debt with $5,062
  • Texas residents were somewhere in the middle with an average credit card debt of $6,724

Statistics also showed that the average amount of auto loan debt here in the U.S. actually increased by two percent while mortgage debt remained relatively static.

Stay tuned for more from our San Antonio bankruptcy blog ...

Contact an experienced legal professional to learn more about managing credit card debt/bad credit and fighting creditor harassment.

This post is for informational purposes only and is not to be construed as legal or financial advice.

Source:

CNN Money, "Credit card debt drops 11%" Jan. 3, 2012