Survey: Nevadans reducing mortgage, credit card debt

The average Nevada homeowner has reduced his home mortgage and credit card debt over the last year because of hard times, not financial prudence, according to CreditKarma.com, a San Francisco-based credit service for consumers.

For example, the average first-home-mortgage debt dropped to $202,000 from $216,000 a year ago, according to the survey announced Wednesday.

CreditKarma Chief Executive Ken Lin attributes the decline to foreclosures, which are eliminating high mortgage debt incurred during the boom years when housing prices were high. New homeowners are buying houses at much lower prices, he said.

The typical individual reduced his credit card debt as well, to $6,170 from $7,883, Lin said. However, Lin attributed that partially to lower credit card limits for many consumers.

The typical Nevadan has a 660 credit score, about the same as 662 a year ago. That's not far below the national average of 667, but it's nothing to brag about.

"It's not a great credit score," he said. A consumer with that kind of score probably pays higher interest rates on credit cards, he said.

California leads the country with the highest at 685, and Mississippi remains the lowest at 633.

Residents in states with higher costs of living seem to have higher scores because they need to rely more on credit than counterparts in low-cost states, Lin said.

The typical consumer also owes $16,877 on auto loans, down 2 percent from the $17,260 owed a year ago.

Nevadans with student loan debt on average owe $27,430, about the same as the $27,018 average, Lin said.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.