Earlier this month, the Associated Press reported that the national credit card delinquency rate had dropped to its lowest level in eight years. However, while the average hovered around 1 percent for the overall country, not all states showed a notable improvement. Tampa Bay Online reports that Florida still had a rate around 1.24 percent, one of the highest in the U.S.
Analysts say that while consumers are getting better at paying down their credit card debt, Floridians have been forced to pay off their owed money with savings. Because many residents have been in dire financial straits since the 2008 recession, Floridians have been pressed for cash for monthly expenses.
“They are taking their savings that could be used for a rainy day and paying off their credit,” credit repair expert William Lewis told Tampa Bay Online. “They’re not making anything on saving accounts.”
Debt can take its toll on a consumer’s credit score, which can mean difficulty borrowing in the future. Credit card holders should repay their debt as soon as possible to avoid credit score damage.