LendingTree Study Finds Cincinnati, Milwaukee and Minneapolis are the Best Places to Pay Down Debt
Americans' debt balances continued climbing in 2018, with total consumer debt tracking to top
- Average credit utilization, as a percentage
- Average monthly rent-to-income ratio, as a percentage
- Regional prices on goods and services
- Local unemployment rate
- State's scoring on debt-friendly laws and policies
Key takeaways
- Cost of living plays a large role in determining where it's easiest and hardest to pay down debt. All of the 10 best places to pay off debt have rent-to-income ratios below 20 percent, and all but one have below-average prices on goods and services.
Cincinnati tops the list of best places to pay down debt, thanks to an exceptionally low cost of living and a relatively good unemployment rate. The metro received a final score of 77.2.Milwaukee andMinneapolis follow closely behind with final scores of 75.6 and 75.5, respectively.Riverside, Calif. , is a tougher place to pay off debt, thanks to a high cost of living and high unemployment. The metro received a final score of 31.8.- Residents of
Detroit andLos Angeles are also challenged, with final scores of 40.8 and 42.3, respectively.
10 Best Places to Pay Down Debt |
|||||||
Rank |
Metro |
Final |
Average |
% of Gross |
Regional |
Unemployment |
State |
1 |
Cincinnati |
77.2 |
32.20% |
15.90% |
92.8 |
5.80% |
C |
2 |
Milwaukee |
75.6 |
31.30% |
18.00% |
95.7 |
5.50% |
B |
3 |
Minneapolis |
75.5 |
31.70% |
16.30% |
100.3 |
4.30% |
C |
4 |
Nashville, Tenn. |
75 |
30.90% |
19.20% |
95.5 |
5.00% |
C |
5 |
Oklahoma City |
73.8 |
33.00% |
18.10% |
95.5 |
5.00% |
B |
5 |
Raleigh, N.C. |
73.8 |
32.90% |
17.60% |
95.7 |
5.20% |
B |
7 |
Kansas City, Mo. |
73.7 |
30.80% |
17.40% |
96.8 |
4.90% |
D |
8 |
Austin, Texas |
73.5 |
32.20% |
19.90% |
95.7 |
4.70% |
B |
9 |
Buffalo, N.Y. |
71.5 |
32.00% |
17.10% |
99.3 |
5.60% |
B |
10 |
Columbus, Ohio |
70.7 |
33.60% |
17.70% |
95.2 |
5.30% |
C |
In the 10 best cities to pay down debt, locals have several factors working in their favor. All of these cities have average revolving credit balances that are at or just under a third of their limits, which is right in line with a good credit utilization ratio of 30 percent or less. With lower balances to begin with, borrowers in these cities can more easily wrangle these types of debt.
Low costs of living also work in residents' favor. Typical rent costs in all 10 cities is less than under 20 percent of income, and
Rent costs compared to local wages are lowest in
Lastly, these 10 cities also boasted below-average unemployment rates and were more likely to have solid protections for debtors.
To view the full report, visit https://www.lendingtree.com/debt-consolidation/best-places-to-pay-down-debt/.
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