9 states with the most credit card debt

Pintau Studio / Shutterstock.com

For millions of Americans, credit card debt is a fact of life. Although many of us made good progress paying off debt in the early stages of the pandemic, we have returned to spending with a vengeance.

In fact, Americans now owe more than $1 trillion in credit card debt, according to WalletHub. The website recently compiled numbers from credit reporting firm TransUnion to reveal the states where residents have the most and the least accumulated credit card debt.

To determine which states have the “lowest and most sustainable credit card debt,” WalletHub looked at a state’s median debt, the cost of paying off that debt, and the time it would take to get out of debt. It assumed the debt had an APR of 16.7% and used the state’s average monthly credit card payment to calculate the payback cost and repayment time.

Below is a list of states where credit card borrowers are most likely to struggle to get out of the red.

1.Alaska

Andrea Izzotti / Shutterstock.com

Average credit card debt: $3,206
Amortization costs: $392
Duration of payout: 17 months and 27 days

The Last Frontier ranks first among the states where credit card borrowers are in the deepest trouble.

If you’re having trouble paying your credit card bills, visit the Money Talks News Solutions Center for expert credit card debt help.

2nd District of Colombia

US Capitol
Orhan Cam / Shutterstock.com

Average credit card debt: $2,788
Amortization costs: $328
Duration of payout: 17 months and 3 days

The nation’s capital is notorious as the place where America’s massive debt originates. The citizens of the District of Columbia seem to be following their government’s example when it comes to footing the bill.

Need a little inspiration to tackle your debt? Read “How I Reduced $25,000 in Credit Card Debt to Zero.”

3. Washington State

Marina in Grays Harbor, Washington
Bill Perry / Shutterstock.com

Average credit card debt: $2,471
Amortization costs: $249
Duration of payout: 14 months and 21 days

The other Washington — the Pacific Northwest state — isn’t shy about racking up debt for plastic, either.

Money Talks News founder Stacy Johnson shares some great tips on how to get back in the black and stay there on his podcast How to Destroy Your Debt and 3 Things to Do Next.

The rest of the top 10

Syed Bilal Javaid / Shutterstock.com

Other states that made this nefarious list are:

  • Vermont
  • Wyoming
  • Oregon
  • Montana
  • New Hampshire
  • Massachusetts
  • Colorado

Paying off the median debt in these states will take residents 13 months or more.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links in our stories.

Comments are closed.