CHULA VISTA (KGTV) — Chula Vista has more than $1.7 billion in total credit card debt, according to a new WalletHub study that ranked the city second out of 180 cities nationwide for highest credit card debt.
The average household in the city owes nearly $21,000.
WalletHub said credit card debt nationwide has climbed to $1.35 trillion and is expected to grow by another $100 billion this year.
Rodrigo Prado, owner of Credit Corner in Chula Vista weighs in on the WalletHub study. Prado said he's spent nearly 25 years helping people repair their credit in Chula Vista, and that the numbers do not surprise him. He said the average amount of debt he sees among his clients is around $30,000.
Prado said many Chula Vistans have higher incomes, which leads banks to approve them for higher credit limits. But rising mortgage payments, car loans, and unexpected emergencies are leaving many families relying on credit cards to cover basic expenses.
"Now people are relying on credit card debt and credit card balances basically to get them across, or bridge that gap," Prado said.
With credit card interest rates hovering between 25 and 30 percent, Prado said those balances can snowball fast. He said he is seeing more people opening new cards for balance transfers, only to fall deeper into debt once promotional periods expire.
"If you're basically already using a credit card to pay another, if you're doing only minimum payments on your credit cards. Those are basically awareness points that you basically have to take control of your finances," Prado said.
Prado said people should seek help before debt leads to wage garnishments, liens, or levies. He also recommends changing habits to cut unnecessary spending and reviewing your credit report regularly.
"Take a look at your credit report. It's important that you look at your finances and your balances, and identify what's damaging that FICO score, what's driving it down," Prado said.
