Forty-three percent of Americans grade knowledge of their own finances as a ‘C.’ One website has looked at how Houston performs when it comes to this and the results are simply not that good.
According to Wallet Hub, Houston is in the 38th percentile when it comes to handling their finances, with an average credit score of just 647. Financial planner Richard Rosso looked at the numbers and told KTRH he can identify the big problem.
“We are using credit to offset the lack of wage growth, hoping that we will see wage growth, and because interest rates were so low,” Rosso explained.
In fact the credit card debt to income ratio here in Houston is just in the 20th percentile, according to Wallet Hub. Rosso says these numbers should get your attention.
“These numbers are more of a wakeup call. Many people need to manage their debt and come up with rules and guidelines, and stick to them,” Rosso said.
The average percentage of credit used in Houston, according to Wallet Hub is almost 36%.And if interest rates keep going up, Rosso says the numbers for us could get even worse.