U.S. States with Highest Median Credit Card Debt

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ByG. Dautovic
September 02, 2021

WalletHub, a personal finance website, has recently conducted research on US states with the highest and lowest median credit card debt. According to their study, Alaska is the most debt-ridden state, with the median amount owed at $2,839, while South Dakota residents owe the least - $1,454 on average.

Americans kicked off 2021 with almost $900 billion in credit card debt. This is slightly less than in 2020 as a result of stimulus-fueled payoffs. However, credit card debt has been rising steadily in the last few years and is expected to increase by $60 billion by the end of the year.

WalletHub uncovered median credit card debt amounts for each state by aggregating data from the credit reporting agency TransUnion, the Federal Reserve, and the U.S. Census Bureau. They looked at average credit card balances, as well as CC payments made since September 2020. Additionally, WalletHub used TransUnion’s calculator to reveal the cost and time needed to pay off outstanding debt.

Here are the five US states with the highest and lowest median credit card debt:

States with the highest debt

States with the lowest debt

1. Alaska

Median credit card debt: $2,839

Time until payoff: 15 months and eight days

1. South Dakota

Median credit card debt: $1,454

Time until payoff: Four months and 15 days

2. Montana

Median credit card debt $2,249

Time until payoff: 14 months and 23 days

2. Mississippi

Median credit card debt: $1,912

Time until payoff: Eight months and 19 days

3. District of Columbia

Median credit card debt: $2,404

Time until payoff: 14 months and 12 days

3. Alabama

Median credit card debt: $2,115

Time until payoff: Eight months and 27 days

4. Colorado

Median credit card debt: $2,576

Time until payoff: 14 months and 11 days

4. Hawaii

Median credit card debt: $2,220

Time until payoff: 10 months and five days

5. Vermont

Median credit card debt: $1,850

Time until payoff: 14 months and seven days

5. New York

Median credit card debt: $1,854

Time until payoff: 10 months and eight days

Naturally, there are dozens of factors that contribute to the overall size of credit card debt in any given state. These include financial literacy, the cost of living, the impact of the pandemic on the state’s economy, unemployment, and many others.

If you happen to be facing trouble with debt, you might want to look into debt relief services or check out various methods for tackling increasing financial obligations before things get worse.

About author

I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.

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