If you have credit card debt, Wichita is apparently one of the best places to be.
That’s according to a recently-released study by SmartAsset, a New York-based personal finance website. In its second annual study of the “best cities to get out of credit card debt,” Wichita ranked as the sixth-best.
Anchorage, Alaska, finished in the top spot, followed by Gilbert, Ariz., and Fort Worth, Texas. Bakersfield, Calif., and Yonkers, N.Y., rounded out the top five. In SmartAsset’s 2016 ranking, Wichita finished eighth.
The website lists the top two reasons for its affordability as relatively low rents and a limited tax burden.
Sign Up and Save
Get six months of free digital access to The Wichita Eagle
“The lower quartile rent for the city is just $429 per month and the estimated federal, state and local tax burden is $4,340,” the report stated. “After paying taxes and covering the cost of housing and other living expenses, many Wichita residents have plenty of money left over that they can use to pay down their debt.”
Anchorage was listed as the top city largely because of its high ($78,662) median annual household income total, according to U.S. Census Bureau numbers.
To complete the study, SmartAsset collected data for 63 U.S. cities with populations of at least 200,000 and used the median salary for high school graduates in each city, according to Census Bureau data.
The website also assumed an annual percentage rate of 16.3 percent for credit card holders, which was the average rate as of December 2016, according to Bankrate. SmartAsset also assumed that 50 percent of consumers’ disposable income would be used to pay off credit card debt.