Americans working to pay off their debt face challenges in reaching that goal, depending upon where they live.
LendingTree, a free credit monitoring service available to the general public, with over nine million online users, ranked the 50 most populous U.S. metropolitan areas in terms of the environment they provide for residents who are paying down debt.
Among the factors they looked at were residents' credit utilization, average monthly rent-to-income ratio, regional prices of goods and services, local unemployment rate and the debt friendliness of each state's laws and policies.
In ascending order, here are LendingTree’s top 10 best U.S. cities for paying off debt:
10. Columbus, Ohio
Columbus is home to some of the largest corporations in the United States, and is one of the nation’s fastest-growing cities. With a cost-of-living index lower than the national average, low unemployment and less money spent on housing costs, Columbus is a good location for debtors to embark on the path to financial health, LendingTree said.
9. Buffalo, N.Y.
Buffalo has the most affordable housing market in the U.S., with January rentals averaging $1,000 per month and home prices averaging about $120,000 a unit. With a median family income of $57,000, Buffalo debtors have reduced housing costs and the financial means to become solvent.
8. Austin, Texas
Despite a high cost of living, the Texas capital of Austin is a hub for high-paying, high-tech jobs. It is also a sellers’ market for real estate, with a median home price of $350,200 and a median rental price of $1,700. Austin debtors can rent or sell real estate to reduce their credit woes, or invest in a new job or career with the city’s many corporate employers, LendingTree said.
7. Kansas City, Mo.
Historic Kansas City is one of America’s fastest-growing downtowns, offering commuters a constantly expanding menu of public transportation options and high-paying, high-tech jobs in the area’s many suburban corporate parks and campuses. While the median home value is just $147,500, the median home price is $188,000 and median rent price is $1,000.
6. Raleigh, N.C.
With the 1959 establishment of a Research Triangle Park in North Carolina’s capital of Raleigh, tens of thousands of jobs were created in the fields of science and technology. Real estate is just as hot in Raleigh as its employment market; the median home value rose by 6.1 percent. Invest in real estate and you can resell it at a profit or rent it out to pay down that debt, LendingTree said.
5. Oklahoma City
For years, Oklahoma City has been a dynamic engine of business, with falling unemployment, one of the strongest housing markets in the country and solid growth in energy, agriculture and manufacturing. The city also has a low cost of living. Debtors can either invest in real estate or rent it out to pay down their debt.
4. Nashville, Tenn.
Despite falling home values in Tennessee’s capital of Nashville, rental prices are on the rise. With a median rental price of $1,650, homeowners can recoup their purchase price and pay down their debt.
3. Minneapolis
The Minneapolis-Saint Paul area is the third-largest economic center in the Midwest, behind Chicago and Detroit. With low rents and low unemployment, it is a good location for debtors to put their financial house in order.
2. Milwaukee
Beginning in the early 21st century, Milwaukee has been undergoing its largest construction boom since the 1960s. The city is home to six Fortune 500 companies, as well as many manufacturing plants and a large number of financial service firms. With a relatively low cost of living and affordable housing costs, debtors’ dollars go a long way toward paying down their debt.
1. Cincinnati
Great amenities and a relatively low cost of living offset this Midwestern city’s rising housing costs, making it LendingTree’s top pick of places to pay down those debts.
The full report can be viewed here.
