According to Newsweek Several cities in California are grappling with rising credit card delinquencies, driven in part by increased borrowing, according to personal finance platform WalletHub.
Chula Vista, a city of approximately 276,000 residents located just seven miles from San Diego, has experienced the highest increase in credit card delinquencies among the cities examined by WalletHub. The median age in Chula Vista is 36, with an average household income of around $102,000 per year, according to Data USA.
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In the first quarter of 2024, credit card delinquencies in Chula Vista surged by 85% compared to the same period the previous year. San Francisco also saw a significant increase, with an 84% rise in credit card delinquencies. Other California cities, including Irvine and Santa Ana, have similarly reported increases in financial struggles among their residents.
John Kiernan, an editor at WalletHub, attributed Chula Vista’s sharp rise in delinquency to increased borrowing. He noted that the city had the sixth highest credit card debt increase over the past year and the second-highest overall balance. “One reason for Chula Vista’s delinquency rate climbing so steeply is its residents are borrowing more, as evidenced by the city’s high credit card debt increase,” Kiernan explained in a statement shared with Newsweek.
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The WalletHub report also highlighted Madison, Wisconsin, as a city experiencing a significant rise in credit card delinquencies, with an 84% increase in the first quarter of 2024 compared to the previous year. Despite having a relatively low level of credit card debt and modest year-over-year increases, Madison residents are facing difficulties, possibly due to existing delinquencies on additional cards.
Garland, Texas, also saw a notable rise in credit card delinquencies, with a jump of 83%. Garland ranked 24th for year-over-year credit card debt increases among more than 180 cities. The city also struggles with a high overall debt delinquency rate, placing 18th in the nation for all types of debt combined.
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WalletHub’s analysis included data from 100 of the largest cities in the U.S. to identify trends in credit card debt and delinquency.
Conversely, Des Moines, Iowa, reported the lowest increase in credit card delinquencies at 19%, followed by Washington, D.C., at 32%, and Detroit, Michigan, at 34%.
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