Everything's bigger in Texas, and that might include the personal debt. According to a study recently published by the online lending marketplace, LendingTree, as reported by KXAN, Austin has landed at the top of the list as the most debt-ridden metro in the United States. Parsing through anonymous credit reports from approximately 210,000 users across the 50 largest U.S. metros, the platform found that Austinites average a hefty $45,920 in nonmortgage debt per person.
This number isn't just a standalone shocker; it breaks down into subsets of debt that shed light on the financial strains faced by many residents. On average, auto loan debt accounts for $17,144 of that total. The need to drive in Austin's car-centric cityscape, particularly against a backdrop of rising auto prices and interest rates, seems to be driving this number up. Furthermore, an educated workforce facing steep tuition costs contributes to the average student loan debt of $11,162 per person. Credit Card debt follows closely behind at $9,313, with personal loan debt resting at $4,638. "As it has grown so rapidly over the years, Austin has become a far more expensive place to live than it used to be," Matt Schulz, chief credit analyst at LendingTree, as per KXAN.
In a close follow-up to Austin, other Texas cities such as San Antonio, Houston, and Dallas also found themselves high on the list of most debt-ridden metros, necessitating a closer look to thoroughly understand the wider regional issue. San Antonio residents carry, on average, $44,812 in nonmortgage debt, while Houston averages $44,640 and Dallas at $43,901, according to MySanAntonio. The data further indicates that San Antonio’s residents are shouldering the heftiest average auto loan debt burden at a striking $18,303.
San Jose, California takes the title for the least debt-ridden metro, with an average resident holding $26,704 in nonmortgage debt, suggesting a variance in economic climate and possibly the role of higher-earning jobs as noted by LendingTree in the discourse of metros with lower overall debt levels.
