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WalletHub: Warwick Tops Credit Card Debt Pay-down List

[CREDIT: Google Maps] The City of Warwick, depicted on Google Maps.

WARWICK — Personal-finance websiteWalletHubranks Warwick among the top eight percent of cities in the U.S. paying down credit card debt, bucking the national trend accounting for $67 billion in debt

amassed on cards in 2018.

Tuesday, the site released its latestCredit Card Debt Study reporting the national all-time record high.WalletHubalso released its nationally representative2019 Debt Survey, which highlights consumers’ feelings about over-borrowing, including the fact that 156 million Americans admit they’d go into debt for frivolous purchases.

In Warwick, the study finds, household credit card debt decreased by an average of $977. Overall, Warwick residents reduced their total credit card debt by $34,092,695.

The city’s average household credit card debt stands at $11,535, with a total credit card debt city wide placed at $402.6 million, according to the report.

After adding $67 billion in new credit card debt to their tab in 2018, U.S. consumers began 2019 owing a total of $1.03 trillion to credit card companies, according toWalletHub’sCredit

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Card Debt Study. Consumers are on pace to add another $60 billion in credit card debt during 2019.

More than 9 in 10 people say they are at least one year away from debt freedom, according to the report. That timeline could get extended if the economy enters a recession first, however.

“Where the problem arises is when borrowers accumulate large credit card debt they can really not afford during a period of economic growth, and then suffer a job loss or reduction in income during a recession,” said Kevin Jacques, the Murch Chair in Finance at Baldwin Wallace University. “My advice is that while the economy is growing, develop a step-by-step plan as to how you are going to get out of credit card debt. Stick to that plan and recognize that you may be vulnerable should a recession occur. Plan accordingly and in your step-by-step plan, decide how you would continue to work to pay off your credit card debt should you suffer a loss or reduction in income.”

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“For those who are struggling with credit card debt, you have to be very mindful of the fact that you should and need to be saving regularly, ” said Sahar Bahmani, associate professor of economics at the University of Wisconsin-Parkside.