Anson County residents have some of the lowest per capita credit card debt in the state, a new study has found.
SmartAsset, a company that examines finances using data and technology, found that Anson County has the ninth-lowest per capita credit card debt in the state in August, making them “among the most responsible with their plastic.” Anson ranks number 1,027 in the nation, with $1,520 of credit card debt per capita, the study found.
The study also found that Anson has the third-lowest percentage of credit card debt to income in the state, with residents’ credit card debt at 9.1 percent of their income. In this category, Anson ranked the 467th-lowest in the country.
In the study, Anson only fell out the top 10 when it came to the percentage of credit card debt to wealth. Anson residents’ credit card debt makes up 11.5 percent of their wealth, making them 21 in the state and 1422 in the nation.
Neighboring counties ranked much lower most categories. Richmond County was 71 in the state for lowest credit card debt, 11 in the state for credit card debt as a percentage of residents’ income, and number 79 in the state for credit card debt as a percentage of their income.
Union County was number 25 in the state for lowest credit card debt, 77 for credit card debt as a percentage of income, and 11 for credit card debt as a percentage of wealth.
Stanly County ranked number 14, 50, and 12 in the state in each respective category, putting it ahead of Anson in the category of residents’ credit card debt percentage of their wealth. Montgomery ranked number 87, 84, and 81, respectively.
The ratio of credit card debt per capita helps determine if the residents are able to pay off their amount of debt, SmartAsset said. It looked for “financial stability” when it measured the ratio of credit card debt to net wealth per capita.
The counties’ overall ranking of ninth in the state was a weighted average of both measurements, with a weight of one given to credit card debt to income and a weight of two given to the amount of debt compared to county residents’ net wealth.
Paying off debt
With the average of $1,520 in credit card debt, it will take Anson residents until February to pay off the cards if they make monthly payments of $309, assuming an interest rate of 13.02 percent. That will accumulate $187 in interest.
SmartAsset recommends three strategies for paying off debt. The first is the “snowball method.”
“You keep up with the minimum payments on all your cards and make extra payments on the card with the lowest balance,” the site explained. “By focusing on paying off the card with the lowest balance first, you’ll have the satisfaction of checking debts off your list more quickly.”
While this method may mean paying more in interest since the highest-interest loans will be left until last, it is a “powerful motivator” since loans are crossed off the list quickly. “Once you’ve paid of your first credit card, you can apply the money you were spending on credit card 1 to making payments on credit card 2 and so on,” SmartAsset said. “You’ll have momentum to continue your debt repayment.”
The second strategy is a modified version of the snowball strategy called the “avalanche method.” Instead of paying off the lowest-interest loans first, consumers pay off the highest ones. Although it “requires discipline and perseverance,” SmartAsset recommends it for those who want to pay less interest, even if it means waiting longer to pay off a particular card.
The third method is to take on new debt to use the money to pay off the older debt. “This could be in the form of a personal loan or it could be a balance transfer to a new credit card,” SmartAsset said. “Taking on new loans carries risks, especially if you have a history of getting in over your head with debt.”
Those who wish to transfer debt to a lower-interest card should look for one offering 0 percent APR and low fees, SmartAsset advised.
A link to the study can be found at https://smartasset.com/credit-cards/credit-card-calculator#northcarolina.