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San Diego credit scores improve, debt does not

Credit scores in San Diego improved in January, rising from an average of 684 in December to 685 in January. Although San Diego credit scores are now higher than the national average, the average debt per person also continues to be above average. While this may seem irregular, the larger-than-average debt is directly related to the high cost of living in San Diego.

The company that issued the results -- CreditKarma -- also noted that for the first time in nine months, scores have improved across the country. The average increase in consumer credit score nationwide rose from 660 to 661, making the increase in San Diego particularly positive.

According to some analysts, one reason for the recent drop in consumer debt is the holiday season. Many consumers take on additional debt over the holidays to buy gifts for family and loved ones and then repay the debt shortly thereafter. It is also common for consumers to take a break from spending in the months following the holiday season.

While a reduction in consumer debt and the overall increase in credit scores are certainly positive developments, the statistics do not suggest that Californians are out of the woods yet. San Diego, which has an exceptionally high cost of living, has a much higher debt load than the national average.

Sitting on a mountain of debt in California is not a fun experience, especially if residents also have debt management issues. With limited employment prospects and a staggering economy, sometimes the only way to get out from under crushing debt is through personal bankruptcy. Talking to a legal professional who is familiar with bankruptcy law can outline the options and tools for helping a person make a fresh financial start.

Source: utsandiego.com, "Credit scores improve," Dan Calbreath, Feb. 16, 2012

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