Consumer credit card debt fell by 10% during the first half of the year and by 17% from a year earlier, totaling $6,472 in June, according to data Credit Karma released July 13. The average credit score has remained steady at 667, down just two points from 665 in June 2010.
Consumers in Colorado had the highest amount of average credit card debt at $7,543 in June, followed by those in New Jersey at $7,531 and Connecticut at $7,479. Consumers in 12 states decreased credit card debt by more than the national average, including New Hampshire, down 17%; Hawaii and Wisconsin, down 14%; Alabama, New York and West Virginia, down 13%; Minnesota, Missouri and Illinois, down 12%; and California, Massachusetts and Texas, down 11%.
The states with the highest credit scores include California (685), Massachusetts (683), New Jersey (683), New York (679), Utah (679) and Washington (679). Consumers in Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina and West Virginia had credit scores of 650 or lower, which is considered poor.
The report also revealed that, since January, consumers with student loan accounts increased their debt on average by 4%, to $29,910, while those with auto loans raised their debt by an average of 5%, to $13,998. During the same period, consumers experienced a 1% decline in outstanding mortgage loans, to an average of $172,286, and a 4% decline in home equity loans, to $47,537.
"Economists are optimistic about the second half of 2011, as gas prices continue to drop and home costs level off. The data supports this trend, reflected by stable credit scores this year and consumers reducing their credit card debt," says Kin Lin, CEO at CreditKarma.com.
CreditKarma.com’s U.S. Consumer Credit Score Climate Report compares the credit scores of its user base with previous scores pulled at least 30 days before and no more than 90 days before the stated month. The June 2011 report includes a comparison of more than 211,849 CreditKarma.com user scores.
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