Alabama ranks 10th in the nation for the average credit card debt per cardholder, with an average debt of $9,161, a 6% increase from the previous year, according to Experian data. However, credit card debt varies across cities in Alabama, with some facing higher repayment challenges. This article explores the top three cities in Alabama with the highest credit card debt repayments, focusing on the average monthly payment per cardholder.
1. Birmingham
Birmingham, Alabama’s largest city with an estimated 2019 population of 209,403, carries the highest credit card debt repayments in the state. The average monthly payment per cardholder in Birmingham is $293, equivalent to approximately 16% of the median household income ($44,851). The city also experiences a high delinquency rate of 1.8%, indicating that 1.8% of cardholders are more than 90 days late on payments, potentially impacting their credit scores and future credit accessibility.
2. Mobile
Mobile, Alabama’s second-largest city with a population of 188,720 in 2019, ranks second in credit card debt repayments. The average monthly payment per cardholder in Mobile is $282, representing about 15% of the median household income ($39,752). Mobile also faces a high delinquency rate of 1.9%, posing challenges for 1.9% of cardholders who are more than 90 days late on payments.
3. Huntsville
Huntsville, the third-largest city in Alabama with an estimated population of 200,574 in 2019, holds the third position in credit card debt repayments. The average monthly payment per cardholder in Huntsville is $280, constituting around 12% of the median household income ($58,833). Huntsville boasts a relatively low delinquency rate of 1.3%, indicating that only 1.3% of cardholders are more than 90 days late on payments, potentially benefiting their credit scores and future credit opportunities.
Conclusion
Credit card debt poses a significant challenge for many Alabamans, particularly in the mentioned cities. High credit card debt repayments can strain budgets and hinder financial goals. Seeking assistance from reputable debt relief programs, such as InCharge Debt Solutions, a nonprofit credit counseling and debt management service operating in Alabama, is crucial. Enrolling in a debt management program allows cardholders to consolidate debt, reduce interest rates, and create an affordable monthly payment plan, facilitating faster debt payoff, improved credit scores, and financial freedom.
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