What City Has the Lowest Debt? Surprise!May 17th, 2014 by The JetSetter Team | Comments Off on What City Has the Lowest Debt? Surprise!
Though we could keep you waiting, we won’t—the answer, surprisingly, is Detroit. While the city is widely known to be bankrupt, the residents boast lower levels of debt than elsewhere in the country. In Detroit, the average person carries a debt load of $23,604—down 7.1% from four years ago. This number is the lowest of any major city and looks at credit card, auto, personal, and student load debt across the 20 largest cities in the United States.
Los Angeles, Miami, New York, and Boston are also among the top, while those living in Dallas have the largest debt load at $28,240. This number is up 7.8% from four years ago. They’re followed by Houston, Washington, D.C., Seattle, and Baltimore.
Of the cities studied, Detroit was the only one whose debt load decreased over the past four years. Nationally, debt has increased by 5% and averages $25,927. And while it seems like extra debt is a bad thing, it is often an early signal of a recovering economy. Credit lending is becoming easier, consumers are willing and (more importantly) able to spend money again.
So, Detroit’s declining debt levels don’t necessarily mean great things for the city. Jason Hartman certainly isn’t recommending you purchase investment property there, and that seems to echo a larger trend. Detroit residents may have less debt because they aren’t able to access more credit or mortgage loans as they attempt to overcome other financial issues. Luckily, residents of Detroit still have decent credit scores—around 667—so they’re managing their existing credit pretty well. (photo credit: Josh Kenzer via photopin cc)