Credit Card Debt In America: States With The Most, Least
NEW YORK, NY – Alaska carries the most credit debt in America, according to a new report published Monday by 24/7 Wall St. The financial news and opinion site reviewed the average bank card balance from creditcards.com to see which states are carrying the most credit card debt.
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Alaska topped the list. The typical resident owes $8,515, more than $2,000 more than the typical American. Here’s the breakdown for Alaska:
Americans are more likely to pay with a credit card than ever before, the authors wrote. This is likely because many cards come with attractive rewards for use, such as points, airline miles and cold hard cash back.
Americans owe more than $1 trillion in credit card debt, according to the Federal Reserve. That’s up from about $854 billion five years ago. The typical resident owes more than $6,300 on bank-issued credit cards, the report found. They have about 3.1 cards and a credit score of 675.
Some states carry more debt on average than others. Here are the 10 states with the most credit card debt:
The authors noted there’s a common denominator among people with high credit card balances.
“The more cards, the more income, typically the higher balances are going to show on your card,” Ted Rossman, industry analyst at the research group creditcards.com, told the authors.
And that bears out — states with more debt tend to have higher earners and have more cards per person. These places also have higher costs of living, the authors wrote.
Meanwhile, Iowans have the least amount of credit card debt. The typical Iowan has a balance of $5,155 and 2.7 cards. The state’s cost of living is about 9.8 percent lower than average. Wisconsin, Mississippi, North Dakota and West Virginia rounded out the five states with the least amount of credit card debt.
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