Missouri's Credit Card Debt Report

Missouri is currently the 18th most populated state in America and home to sports teams like the St. Louis Blues, the St. Louis Rams, the St. Louis Cardinals, the Kansas City Chiefs and the Kansas City Royals. Apart from an obvious love of sports, Missouri and Missourians are also known for having a vibrant history, a rich geography and a diverse economy. As an active and competitive state in several successful industries including aerospace, transportation equipment, food processing, publishing, beer, agriculture, dairy, beef, wine, lead, coal, limestone, tourism, services and manufacturing, MO has plenty of resources to fall back on. However, during the economic recession, there is no denying that MO has taken a beating. Unemployment is up; revenue is down and surpluses have been depleted. And, to make matters worse, Missourians are feeling the crunch with an increase in foreclosures and credit card debt. Unfortunately, during these tough times, this Midwestern state is caught right in the middle of the recession. One option that many Missourians are turning to is debt consolidation.

The Show-Me-The-Money State

So what's going on? Where is all the money going? With a median income of $45,114.00, MO is currently ranked 37th of the 50 states. Furthermore, Missourians are suffering from a 9.2% tax burden overall. With a per capita personal income of $38,084.00 in 2008, this is also well below the national average of $44,254.00. These numbers all suggest that the middle state is stuck between a rock and a hard place when it comes to the economy.

The problems do not stop there. In fact, it is through these numbers that we come to the scary individual statistics of Missourians. First of all, due to the economic recession, more than two hundred thousand Missourians are out of work. This is causing more and more people to lose their homes and rack up their credit cards in an attempt to stay above water. After all, just because you lose your job does not mean your life stops. You still need to pay for weekly groceries, fuel, phone and internet (to apply for a new position). With no money coming in, these bills are often transferred to a credit card. There is no other option.

What this means for Missourians is that credit card debts continue to rise. With the average consumer owing $6,700.00 in credit card debt, this number is up from $400.00 from last month. Furthermore, with an average annual APR of $16.24%, Missourians can expect to pay an additional $1088.00 per year in interest on top of their outstanding debt. Additional national debt benchmarks include $195,386.00 in home mortgage loans, $54,646.00 in home equity debts, $14,439.00 in auto repayments and $26,000.00 in student loans for the average consumer. Missourians are literally sinking in a pool of debt.

And this debt is not just harming Missourians on paper. Unfortunately, it is hitting us where it hurts- our homes. There are over 2.3 million homes on file for foreclosure in MO which is 1.2% of the total homes. This is an increase of 33% from 2007. Debt is also making it harder and harder to maintain a good credit score with Missouri FICO scores decreasing. MO currently slips in just above the national FICO rating average of 680 with 683; however, experts agree that a ‘good' FICO scoring is anything about 700. With a poor FICO scoring, which is usually caused by outstanding payments, Missourians will have a harder time finding a fair loan. In fact, the banks admit that those with a score under 700 will have to adhere to stricter penalties, higher interest rates, larger payments and less-than-promising terms in order to obtain a loan.

When Credit Card Debt Has You Down

One of the options that thousands of Missourians have discovered is debt consolidation. Debt consolidation makes it easier to manage your monthly spending because it combines all your outstanding debts into one payment. In most instances, a consolidation payment offers lower interest rates, lower monthly payments and longer payment terms so it is easier to get the numbers down.

Debt consolidation provides a simple personal solution to some of the most stressful problems caused by debt. First of all, instead of sorting through the bills each month, trying to determine how much you can pay on each one or which ones can be left until next month, you only receive one bill each month. Your mail box has never been emptier and you have never felt freer.

Secondly, a debt consolidator can offer you expert advice on how to manage your finances. Although you will have to sort through all your paperwork, you will sit down one on one with a debt consolidator and they can help you determine a spreadsheet and monthly spending budget.

Furthermore, with debt consolidation, you are in charge of the payment terms. The monthly payments are based on what you can afford through a financial assessment. And, if you happen to lose your job or your financial situation changes in any way, it is possible to switch your consolidation terms to adhere to these changes. You just need to be open and truthful about the situation.

And, finally, a debt consolidator will work on your behalf to stop those annoying phone calls, personal interruptions, late charges and penalty fees so you can actually get ahead with your payments without being tied down by accumulating debt. You will see a reduction in your overall debt as well as a reduction is your level of stress, your sense of shame, and your fears for your financial future.

Additional Tips on Keeping Credit Card Debt to a Minimum

After you have spoken to a debt collector, you will most likely need to hide away that credit card. After all, the last thing you want to do is accumulate even more debt! Here are three ways to survive without your beloved plastic friend and succeed in your personal economic reform plan.

• Use Cash Only - every week, visit the ATM and take out your weekly budget in cash. If you have budgeted right, there is no reason why you shouldn't be able to make the money last. Make sure you include a little ‘emergency' money just in case there is an error in your calculations.
• Swap instead of Shop - if you are in desperate need of a sales item, why not invite some friends over for a swapping session instead of hitting the shops? You can swap all sorts of items from clothes and shoes to Tupperware and children's toys.
• Always Check for Specials - before you do your weekly shop, check out the local catalogues to see what items are on special and plan your meals around them. You can stand to save a small fortune every week just by choosing the discounted items.

Missouri may be struggling through this global recession; however, the end is in sight. Although things may look grim now, there are ways to change your current financial situation and survive the devastating consequences of the economic crisis. With the right advice from a debt consolidator and the right willpower, Missourians can eliminate outstanding debt once and for all. We'll ‘show' you how.