Living in Debt
Rent, car payments, student loans. Bills suck, but they’re part of everyday life. A new report from WalletHub shines a light on the state of individual finances in America and reveals that things aren't so hot across Texas.
With debt plaguing our nation, the financial website examined a host of U.S. cities to determine 2016’s best and worst cities at managing money. Credit card debt, mortgage debt, and number of late payments were among the factors considered.
San Antonio ranks in the 10th percentile nationwide, the lowest ranking among major Texas cities. On average, residents make 4.5 late payments each month and have a credit score of 644, considered "poor" by national standards. San Antonians also carry a mortgage debt-to-income ratio of 531 percent, a car loan debt-to-income ratio of 83 percent, and student loan debt-to-income ratio of 110 percent.
Finances in other Texas cities are in even worse shape. Rio Grande City, Lancaster, and Killeen are among the worst cities in the nation, landing in the 1 percentile for money management.
Houston, Dallas, and Fort Worth place in the 30th, 29th, and 27th percentiles, respectively, and each city had a "poor" credit score. Austin fares better, in the 58th percentile, and residents in the Capital City have a "fair" credit score.
We may want to take a lesson from California as four of the five top cities for managing money — each ranking in the 99th percentile — are in the Golden State. The worst cities at staying on top of finances are Pullman, Washington; College Park, Maryland; Gettysburg, Pennsylvania; Athens, Ohio; and Boone, North Carolina.
WalletHub points out that the inability to successfully manage money starts at a young age. The website argues that the accountability falls on parents and schools to educate children on being financially responsible. While this is valuable advice, we wouldn’t be upset if the government decided to erase student debt either.
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