In our previous post, we discussed how the foreclosure rate here in Arizona and across the United States dropped significantly in 2011. Now, recently released statistics show that the number of Americans in need of some form of debt relief due to unmanageable credit card debt also dropped in 2011.

According to a recent report from the website CreditKarma.com, Americans reduced their average credit card debt by a whopping 11 percent in 2011. Specifically, the average amount of credit card debt for Americans in 2011 was $6,576 in 2011 as compared with $7,404 in 2010.

This continues a trend from 2010, in which credit card debt fell by seven percent.

What's behind this decline in credit card debt?

Credit Karma CEO Ken Lin indicates that a continuing decline in consumer confidence coupled with a continuing effort by banks/lenders to reduce credit limits and rein in lending practices contributed to the overall decline.

Interestingly, Lin believes that this phenomenon will likely not carry over into 2012 as the improving economy means more consumers will be spending and more lenders will be looking to extend credit.

"I believe we are just about at the bottom of the debt trend," he said.

Breaking the figures down further, it appears that the state where consumers had the smallest amount of credit card debt in 2011 was Wisconsin, where the average credit card was $5,062.

Conversely, the state where consumers had the highest amount of credit card debt in 2011 was Alaska, where the average credit card was $7,937.

How did Arizona fare?

Statistics show that the average credit card debt in Arizona in 2011 was $6,811.

Stay tuned for more from our Phoenix bankruptcy blog ...

Whatever the cause, whatever the reasons behind your financial difficulties, take the time to speak with an experienced legal or financial professional if you would like to learn more about Chapter 7 bankruptcy, Chapter 13 bankruptcy or additional debt relief options.

The following post is for informational purposes only and is not to be construed as legal or financial advice.

Source:

CNN Money, "Credit card debt drops 11%" Jan. 3, 2012