Is Consumer Debt Rising in Your Neck of the Woods?

Despite mixed signals from many experts on whether we’re actually in an economic recovery, American spending is on the rise according to two new reports from the Federal Reserve and national debt relief firm, CareOne Services.

While these reports are a good sign for the national financial picture, it bodes badly for a nation of consumers who were already overleveraged by the housing crisis, high unemployment and rising unsecured debt loads.  Even though average Americans were encouraged to pay down debt and build up savings in the years following the recent Recession, according to a recent analysis of consumer debt by CareOne Services Inc., residents in all states of the union have maintained an average of more than $10,000 in debt.

CareOne’s “State of Debt Ranking” found the following states to be the 10 “worst” in terms of highest average consumer debtloads:

(1) Delaware (and state with the highest average consumer debt):
Average consumer debt is $20,233, spread over seven creditors.

(2) Rhode Island:
Average consumer debt is $20,130, spread over seven creditors.

(3) Maine:
Average consumer debt is $19,454, spread over six creditors.

(4) Alaska:
Average consumer debt is $19,225, spread over six creditors.

(5) Colorado:
Average consumer debt is $18,811, spread over six creditors.

(6) South Dakota:
Average consumer debt is $18,707, spread over seven creditors.

(7) North Carolina:
Average consumer debt is $18,536, spread over six creditors.

(8) Connecticut:
Average consumer debt is $17,334, spread over six creditors.

(9) Wisconsin:

Average consumer debt is $16,903, spread over five creditors.

(10)Alabama:
Average consumer debt is $16,591, spread over seven creditors.

Lowest debt totals resided in the following 10 states:

(10) California:
Average consumer debt is $12,801, among five creditors.

(9) Michigan:
Average consumer debt is $13,328, among five creditors.

(8) Mississippi:
Average consumer debt is $13,512, among six creditors.

(7) Vermont:
Average consumer debt is $13,707, among five creditors.

(6) Missouri:
Average consumer debt is $13,737, among six creditors.

(5) Indiana:
Average consumer debt is $13,945, among five creditors.

(4) Kentucky:
Average consumer debt is $14,028, among six creditors.

(3) Iowa:
Average consumer debt is $14,099, among five creditors.

(2) Virginia:

Average consumer debt is $14,194, among five creditors.

(1) Tennessee (and state with lowest debt load):
Average consumer debt is $14,222, among six creditors.

If you splurged this past year and are now experiencing the “headaches” of your holiday binge, you are not alone. The Federal Reserve’s report yields troubling numbers for already beleaguered budgets as our nation’s revolving debt (fueled largely by credit card expenditures) rose by 3.5 percent in December 2010. Unfortunately, when you add increased spending habits to thousands of dollars in debt, it becomes a simple formula signaling an increased need for immediate debt relief and fewer and fewer options that provide actual, long-term results.

Fortunately, if you fall into this category, you do have options—viable solutions for discharging debts under a Chapter 7 liquidation or Chapter 13 restructuring bankruptcy. Our debt-ful ways have meant these types of filings have become commonplace measures for millions of men and women hoping to restructure their debts into a more affordable payment option or, in most cases, dispense with them completely.

If you live in North Carolina and consumer debt has gotten you down, it’s important to understand that a qualified bankruptcy attorney can provide a safe way for you to face your lingering financial fears. In fact, the bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to +1-833-627-0115, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.