brand brand
Helping good people through bad times
Local:423-954-7180
Local:423-954-7180

Credit card debt down, but so are credit scores for Tennesseans

For many Chattanooga residents, the New Year brings good news but also bad news when it comes to credit. While average credit card debt is down, so are credit scores.

It seems that Tennessee residents struggled with credit scores over the last year, according to a large credit recording bureau. The good news is that overall consumer debt appears to be down since the average credit card debt declined 38 percent to $4,880 at the beginning of the year and the average mortgage dropped from $129,481 to $123,921. With that however, is the double hit that credit scores dropped from an average of 692 to 636 and student loan debt increased a whopping 20 percent, from an average of $23,886 to $28,704.

It is unclear why credit scores dropped simultaneously to debt reduction generally. Some reasons may be delinquent payments or minimum payments made on credit cards. Such practices are often signs that debtors are struggling to pay down their debt. Such signs of struggle might mean that debtors require assistance in attacking their debt. Specifcally, bankruptcy filings may be an option for certain individuals experiencing particular financial difficulty. Bankruptcy allows for relief of almost all forms of debt, with the exception of student loans. It will also end creditor harassment.

Struggling with financial challenges is never easy. Whether they stem from unemployment, unexpected expenses or simply mistakes, it often requires assistance in order to escape the seemingly insurmountable debts. Locating proper assistance may be difficult, but it is well worth it in the end.

Source: Memphis Business Journal, "Average Tennessean's credit score plummeted from 2012 to 2013," Cole Epley, Feb. 13, 2013 

No Comments

Leave a comment
Comment Information

Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
Map & Directions