Debt Drops Across California
By: Brenda Stokes
on Friday, May 18, 2012
Los Angeles residents have reason to rejoice, along with the rest of Californians. Apparently, people in California owe less money on debts now than they did at this same point in time last year.
This information comes from a report compiled by Credit Karma, which showed that both mortgage and credit card debt for state residents has dropped. The numbers are pulled from the month of April and show Californians owed $303,745 on mortgages compared to $311,551 in April of last year.
Credit card debt also went down with people owing $5,674 as compared to $6,384 at this time last year.
Credit scores dropped a bit, however, with the average score coming in at 676, compared to 685 last year.
People have less debt in mortgages because it's harder to get a loan now as well. Likewise, California's high foreclosure rate is playing a role in these reduced debt numbers. Case in point, many homes have already fallen into foreclosure and the bad debt has been written off.