Consumer Debt Tops $17.5 Trillion: Here Are 10 US States Struggling With the Most Debt
Consumer debt tops $17.5 trillion in the US. Credit Card debt alone stands at over $1 trillion and is set to rise in 2024. Driven by the rising costs of essentials and luxuries, personal debt is high before considering mortgage debt totaling over $12.25 trillion, student debt totaling over $1.6 trillion, and auto loan debt over $1.6 trillion.
Research by banking experts at CreditDonkey analyzed the average mortgage, student, automobile, and credit card debt in every state. Each metric was ranked out of 10; the higher the amount of debt, the closer to 10. Each state was then given a score out of 40; the higher the number, the more debt a state has.
Anna Ge, Director of Research at CreditDonkey, commented: “The rise of debt in America is a multifaceted story, reflecting the evolving dynamics of the economic landscape. As the nation has grown, so too have the complexities of the financial systems. The causes for the surge in debt are rooted in a confluence of factors – from the pursuit of higher education to home-ownership aspirations and the challenges of rising costs across the board.”
1 – California
According to the data, California has the highest debt with a debt index score of 35.28. The high price of homes has driven California to have the highest average mortgage debt of $422,909 per household. In addition, many Californians need a car, adding another $23,262 to their total debt.
2 – Hawaii
Coming in at a close second is Hawaii, with a debt index score of 34.67. On average, Hawaiians have around $6,343 of credit card debt where prices are rising faster than incomes. Along with credit cards, Buy Now Pay Later services are increasing among Hawaiians and high house prices average $387,277 of mortgage debt.
3 – Maryland
Maryland is among the top three, with a debt index score of 33.82. As college costs increase along with the general cost of living, residents borrow more. This state has the most significant student debt, averaging $43,116. Maryland also has a high average car debt of $22,809.
4 – Alaska
Alaska’s debt index score is 33.30, ranking it fourth. Alaskans have the highest average credit card ($7,338) and automobile debt ($25,846) in the US.
5 – Colorado
Colorado earned the fifth spot with a debt index score of 33.06. The state boasts high mortgage debt ($319,981) and student debt ($36,939).
6 – Washington
Washington ranks sixth on the list. Its average house price of $563,000 is 66% more than the national average. Combined with an average mortgage debt of $331,658 and high car debt averaging $23,754, it’s no wonder Washington is on the list.
7 – Virginia
Virginia follows the trend of high credit card debt (average $6,477) and student debt ($39,599). Student loan debt in the U.S. has increased by 66% over the past decade, and it now totals more than $1.6 trillion, according to the Federal Reserve.
8 – Georgia
Georgia is eighth on the list, with a debt index score of 32.00. Georgia is recognized as a state with one of the highest levels of student debt ($35,215) and credit card debt ($6,265).
9 – Texas
Despite having no state income tax, Texas is ninth on the list. Texans have above-average credit card ($6,542) and auto debt. With over 100 million Americans having a car loan, auto loan debt in the U.S. currently stands at $1.5 trillion–Texas stands at the top with an average auto debt of $27,739.
10 – Nevada
Rounding out the list at the number ten spot is another no state income tax state–Nevada with a debt index score of 31.76. Nevada’s high mortgage debt ($275,352) and high credit card debt ($6,176) position the state as one with the most debt.
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Theresa Bedford is a travel and lifestyle writer with an obsession to simplify life and travel more. She writes about simple living, money, travel destinations, family-friendly activities, and more. Her work has been featured on the Associated Press wire, MSN.com, GoBankingRates, Wealth of Geeks, Savorteur, and more.
