There may be a light at the end of the tunnel after all, as a recent Consumer Distress Index report released by CredAbility (a credit counseling and education service) shows consumer net worth is on the incline for some U.S. states, including Oklahoma. It wasn’t that long ago that filing bankruptcy, defaulting on mortgages and receiving unemployment checks was the norm for many Americans, but for the first time in four years, consumers are fighting their way back to good financial health. According to the report, consumer net worth has improved, late payments on mortgages have hit a three-year low, and the U.S. savings rate is increasing, bringing the index score to 71.3 in the second quarter of 2012 – a 4.6-point incline over the past year. Unfortunately, financial recovery is uneven, as residents in some parts of the country remain economically distressed.
Economic Health on the Upswing for Some Areas
Those who live in Washington, D.C. and Boston are in the best shape, according to the index, while residents in Detroit and some parts of California and Florida continue to struggle financially. And despite the promising improvement, the Consumer Distress Index offers a view of our country’s financial health that is far from secure. Index scores below a 70 are a sign of financial distress, and a 71.3 in 2012’s second quarter is barely a passing grade, suggesting that economic health in the United States remains weak. However, the incline does mark an important step forward from the distressing state of economic health three years ago, when virtually no U.S. state was spared financial hardship.
Credit Score Rankings Measure Economic Stability
The Consumer Distress Index assigns each area of the U.S. a score from zero to 100, with a ranking of 90-100 indicating complete security, 80-90 indicating good stability, and a ranking of 70-79 indicating weak economic health. A ranking of 60-69 is a sign of distress, and the CredAbility service considers anything below that level to be indicative of a state of economic emergency. To determine the scores for each area, CredAbility examines five broad categories: mortgage delinquencies, government data on unemployment and under-employment, credit scores, consumer net worth and savings rates. Compared to 1990, when most of the country was in a good/stable economic condition, the majority of states across the country are in a tenuous situation today.
Contact Our Bankruptcy Attorneys for Help
According to the Consumer Distress Index, the big cities with the best credit scores include Boston/Cambridge (77.42), Washington/Arlington/Alexandria (77.14) and Minneapolis/St. Paul/Bloomington (76.97). The big cities with the worst credit scores however, include Orlando/Kissimmee/Sanford, Florida (59.47), Tampa/St. Petersburg/Clearwater, Florida (60.13) and Riverside/San Bernardino/Ontario, California (60.15). Our very own Oklahoma City, Oklahoma falls under the list of small cities with the best credit scores, ranking number two behind Omaha/Council Bluffs, Nevada, with a score of 76.25. Despite the apparent economic improvement in some areas of the United States however, many residents of Oklahoma remain financially distressed. If you are considering filing for bankruptcy in Oklahoma, our experienced bankruptcy attorneys at Oklahoma Legal Center are here to help. Contact our Oklahoma City law firm today to discuss your best course of action.