Using that credit card a bit too loosely?
Having to charge even items like groceries just to get through the month?
In either case, if you’re not paying off your outstanding balance as fast as you’d hope, you’re not alone.
Certainly not in Fresno, nor in several other cities in California.
Fresno has the third highest revolving debt index in the state and No. 20 nationally, according to data in an interactive map by Smartasset.com.
Typically, someone in Fresno needs significantly more time to pay off a credit card balance than households in most other cities.
What that means is that while households in bigger cities such as Los Angeles might on average owe more on their cards than those in Fresno, local folks have less disposable income to pay off their debt so their index is higher.
So, typically, someone in Fresno needs significantly more time to pay off a card balance than those living in most other cities.
Eureka and Chico were 1-2 in the state and fourth and sixth nationally, according to SmartAsset. Bakersfield is fourth in the state and No. 72 nationally.
Los Angeles, by the way, isn’t that much better, checking in at sixth in the state and No. 92 in the nation.
40.37 Fresno’s revolving debt index, which is the third highest in California behind only Eureka (50.48) and Chico (48.59)
There is a methodology in assessing an area’s revolving debt index.
SmartAsset first determined the disposable income for 208 major U.S. metro areas.
Disposable income was calculated by taking the median household income and subtracing basic needs (average food, childcare, medical and housing costs) for a household with two adults and one child.
Then the study considered the average household credit card debt as a percentage of the remaining discretionary income to determine credit card debt relative to disposable income.
Finally, they indexed the numbers from 0 to 100.
Eureka’s state-worst index was 50.48., Chico followed at 48.59 and Fresno’s was 40.37.
Bakersfield was fourth but behind Fresno by a wide margin at 29.92.
SmartAsset looked for places in the country where people rely on revolving credit card debt in order to afford basic expenses. Here are the California cities that have the highest credit card debt relative to disposable income.
Cost of Living
Average Credit Card Debt
Card Debt/Disposable Income Ratio
Revolving Debt Index