Nearly 6 Out Of 10 Credit Card Holders In California Are Using Too Much Credit

California credit card debt keeps growing.

Credit cards are the most accessible financing tool for Americans.

Most adults — even those with already damaged credit or no credit history at all — can easily open an account. 

*** SPECIAL NOTE *** – If your credit cards, personal loans, or medical debts have become unmanageable and you owe over $20,000… then go here for debt relief. We can help!

California Credit Card Debt By The Numbers

In California, about 77 percent of adults with a credit score have a credit card or home equity line of credit (HELOC), according to the Federal Reserve Bank of New York’s Community Credit report.

This figure dropped sharply in the years following the Great Recession but picked back up after 2012 and has grown steadily since.

The percentage also varies widely within California — from 63.5 percent in Tulare to nearly 86.6 percent in San Francisco.

The national share, by comparison, is just over 73 percent.

The Upside And Downside To Access To Credit

As many people learn in adulthood, access to credit is important. It helps them build a solid credit history, which in turn helps them buy a house or rent an apartment, and finance the purchase of a vehicle.

However, having such easy access to credit can also lead to irresponsible financial behavior.

Spending beyond their means is a common mistake among credit card holders.

Some use plastic for large emergency expenses, while others purchase things they otherwise couldn’t afford.

They assume — or better yet hope — they’ll come up with the cash to pay off their balances later.

This kind of reckless spending often traps many credit card holders in an endless cycle of debt. 

In California, more than 56 percent of adults with access to credit cards use 30 percent or more of their spending limit.

A balance of less than 30 percent is what credit experts consider a healthy credit utilization ratio, or the amount of credit used against the amount that’s available.

Although a high balance does not necessarily mean the cardholder can’t pay it off, the New York Fed’s data shows that nearly 1 in 5 consumers with access to plastic in California were behind on their credit obligations at some point in 2017.

If you’re struggling with high credit card debt, you have options. 

At Americor, we understand the unique financial challenges people are facing today.

As America’s trusted source for debt relief solutions, we aim to empower you with financial knowledge that can lead to informed decisions, whether it’s about savings, investments, or managing debt.

If your debt has become unmanageable and you have difficulty making your debt payments each month, then you should consider a FREE consultation call with one of our certified Debt Consultants, who can provide personalized debt relief advice tailored to your specific needs.

By taking proactive steps today, you can put an end to your financial stress and work towards a brighter financial future. 

Remember, there is always hope for debt relief, and our team of experienced professionals are ready to guide you on your journey to regaining control of your finances.

For more information on Americor’s debt relief services, contact us today to see how we can help you eliminate your debts, and get on the fast-track to becoming completely debt-free!