Report: High-debt cities sometimes a liability

In some cases, where a person lives can have a negative affect on their finances.

For that reason, many might consider moving away from cities where the cost of living, home prices and "a culture of spending" can seriously ramp up their personal debt, reported U.S. News & World Report. Using data from the credit reporting bureau Experian, the paper found that the cities with the residents that had the highest levels of debt were Denver, Seattle, Dallas and Phoenix.

Consumers nationwide are doing a better job of paying down their credit, but some are having a harder time because where they live forces them to spend more, said the report. Additionally, the paper cited analysis from Bundle.com that showed the cultures in different states call for varied spending habits. In West Virginia, for instance, the average household spent $24,517 annually - excluding rent or mortgage, while the average Connecticut household spent $57,331 a year. In addition, Southern states seemed to spend less than states on either coast.

It would appear that moving to certain Southern states could also help consumers keep more of their income. Relocating homeowners might be drawn to certain Southern states that lack an income tax, such as Texas, Florida and Tennessee.


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