San Antonio came up last in a new study of the nation’s major cities for credit card debt.
There are a couple of reasons San Antonio households may be taking longer to pay off credit card debt according to Comerica Bank Chief Economist Dr. Robert Dye.
“One might be lower income levels than some other areas,” Dye said. “And the other explanation may be the impact of the energy sector in San Antonio economy, a very important part of the economy, and now slowing down, and perhaps residents feeling uncertain about their jobs and for that reason taking longer to pay off their revolving credit.”
He believes many people may be putting necessities on a credit card rather than paying out of pocket, and they can get stuck when they can only make minimum payments.
At SAMM Ministries, CEO Navarra Williams says
Residents at the Transitional Living Center of SAMM Ministries go through a Money Management course to learn how to save money and get off the credit treadmill.
“We have lots of great stories in terms of folks that have eliminated all their debt,” said SAMM Ministries CEO Navarra Williams. “One family saved enough money to put a down payment on a home. We teach a lot of those basic money management principles.”
Dye believes lower income levels often force people into debt. San Antonio needs a higher education level to turn the problem around according to Williams.