Study shows how far a $100K salary stretches in US cities

Daily Mail​

6 hours ago

A six-figure salary was once considered the benchmark of a comfortable lifestyle, but new research suggests it depends exactly where you live. A report by GoBankingRates analyzed how far a $100,000 annual wage would stretch in America's 50 biggest cities. It found that while workers could save $40,000 a year in Memphis, Tennessee , they would be left $6,209 in debt in New York.
Researchers assessed taxes and living costs in each city then worked out how much money an individual would have after these expenses. While New York came out as the most expensive city, it was followed by San Francisco where a $100,000 salary would leave workers $1,342 in debt.
It was followed by San Antonio, Tulsa and Oklahoma City where the income after expenses topped $37,081, $35,696 and $35,609 respectively. The findings lay bare just how widely the cost of living varies in America as households across the board grapple with the soaring price of groceries, homeownership and utilities.
Living costs have been pushed up predominantly by inflation which peaked at 9.1 percent in June 2022. Figures from December show the annual rate of inflation was hovering at 3.4 percent. In a bid to tame inflation, the Federal Reserve embarked on a campaign to hike rates to their current 44-year high of between 5.25 and 5.5 percent. In theory, higher interest rates are intended to curb consumer spending and in turn bring inflation down.
But such rates have a knock-on effect on loans such as credit cards and mortgages. The average 30-year mortgage rate peaked at nearly 8 percent last year before falling to their current rate of 6.69 percent, according to data from Government-backed lender Freddie Mac.
It is little wonder then that households are struggling. Earlier this month a report found the number of people falling behind on their credit card bills increased in 49 out of 50 states last year. According to analysis by WalletHub , the number of borrowers struggling to keep on track of their credit card bills has risen the fastest in Oregon. Between September 2022 and September 2023, delinquencies in the state soared by 51 percent.
Generally payments are reported to the credit bureaus as delinquent once they are 30 days past due. Being delinquent on a credit card is damaging for your credit score and late payments remain on your credit report for seven years, experts warn.
'When you are delinquent on credit card debt, it is important to make a game plan to get your account current as soon as possible, as long-term delinquency can lead to severe credit score damage,' said WalletHub editor John Kiernan. 'If you're late on your payment by fewer than 30 days, paying before the 30th day will keep your delinquency from being reported to the credit bureaus.'