Norwalk, Downey have higher credit card debt than state average
DOWNEY - Norwalk’s average credit card debt burden lies higher than the California average, a recent study says.
The study was run by consumer research company Value Penguin, who examined the credit card debt-to-income (CDTI) ratio across 150 cities in California.
According to Value Penguin, the California average household credit card debt was $8,917 compared to an average income of $95,671, giving the state’s average a CDTI ratio of 9.32 percent.
Norwalk’s CDTI ratio was placed 48 percent higher than that of California’s, citing a 13.84 percent burden from an average credit card debt of $10, 412 compared to a $75,245 average income.
Neighboring Downey also made the list 29 percent above the state average. Downey scored a 12.05 percent burden stemming from an average $9,775 debt and $81,095 average income.
Los Angeles, Long Beach and Buena Park all fell above the state average as well, showing CDTI’s of 10.98 percent, 11.60 percent, and 11.54 percent respectively.
The consumer research company says that more affluent cities are better able to handle credit card debt than lower income cities. While many of these lower income cities had average household debts much lower than the California average, the debt weighed heavier because income was disproportionately lower.