Which states have most credit card debt?

Asked by: Raegan Paucek  |  Last update: February 9, 2022
Score: 4.8/5 (47 votes)

The 10 U.S. states with the most credit card debt
  • Oregon. ...
  • Washington. ...
  • Kansas. Median credit card debt: $2,186. ...
  • North Dakota. Median credit card debt: $2,001. ...
  • Vermont. Median credit card debt: $1,850. ...
  • Colorado. Median credit card debt: $2,576. ...
  • Montana. Median credit card debt $2,249. ...
  • Alaska. Median credit card debt: $2,839.

Which state has the least credit card debt?

Here's what our research revealed: Credit card debt ranges by state, with consumers in Alaska facing the highest credit card debt while consumers in Iowa have the least. American consumers tend to pay the minimum balance on their credit cards each month.

What percent of American has credit card debt?

15% of Americans Have Been in Credit Card Debt for 15 Years

A separate survey conducted by Inside 1031 found that 55% of people carry a credit card balance from month to month. In addition, 40% haven't been credit card debt-free since before 2018 — and 15% have had credit card debt since before 2006.

Why is America in debt?

There are four primary sources of American debt: home mortgages, car loans, student loans, and credit card debt. Of that $14 trillion dollar debt we mentioned, a little more than $9 trillion can be credited to mortgages. Another $1.3 trillion comes from car loans, which have had low-interest rates since 2008.

Is credit card debt going up or down in America?

In the third quarter of 2021, Americans racked up $17 billion in credit card debt, the same increase as in the second quarter, according to data published Tuesday in the New York Federal Reserve's Quarterly Report on Household Debt and Credit.

5 States With Highest Credit Card Debt

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What is the average credit card debt in America 2021?

The average credit card holder in the U.S. had $5,668 in credit card debt in Q2 2021 — that's 1% higher than Q1 2021's $5,611 average. From the first Q1 2020 to Q2 2021, the average credit card debt per cardholder decreased by $766 or 12%.

What is the average credit score in America?

When a lender or landlord reviews your credit, it might use one of two credit scoring models: VantageScore or FICO. Both scoring models range from 300 to 850. And according to a July 2021 VantageScore report, the average credit score in America is 697.

What is the average credit card balance in America?

The average American has a credit card balance of $5,525. Although that's a large amount, it has been dropping over the last two years. The average balance was $6,629 in 2019 and $5,897 in 2020. That data comes from Experian and its yearly State of Credit reports.

How many US citizens are in debt?

Total American auto loan debt is $1.42 trillion. Thirty seven percent of households in the United States (that's about 45.4 million households) have this kind of debt, with an average of $31,142 per household.

What is the one reason that an American is carrying a credit card balance of more than $6200?

Groceries are the number one reason why people carry a balance,” Micheletti says. “I was shocked, and I typically don't get too shocked with these things.”

What is the fastest way to pay off credit card debt?

6 ways to pay off credit card debt fast
  1. Make an extra monthly payment. ...
  2. Get a balance transfer credit card. ...
  3. Map out a repayment plan with a “debt avalanche” or “debt snowball” ...
  4. Take out a personal loan. ...
  5. Reduce spending by tightening your budget. ...
  6. Contact a credit counseling service for professional help.

What is a healthy amount of credit card debt?

But ideally you should never spend more than 10% of your take-home pay towards credit card debt.

What would the US government's credit score be?

Standard & Poor's credit rating for the United States stands at AA+ with stable outlook. Moody's credit rating for the United States was last set at Aaa with stable outlook. Fitch's credit rating for the United States was last reported at AAA with negative outlook.

What is a perfect credit score 2021?

Credit scores range from 300 up to 850, which is considered perfect credit.

Does Capital One use FICO?

CreditWise from Capital One is an online tool and app that allows you to monitor your credit score. It uses VantageScore's 3.0 scoring model to measure your credit, provided by TransUnion. This model evaluates similar criteria as your FICO Score, and you'll receive an updated score every week.

What is the average credit card bill per month?

The average monthly credit card bill is a minimum payment of $110.50, based on the average American credit card balance of $5,525 and the average minimum payment percentage of 2%.

What are 5 common mistakes that people make with credit?

5 Credit Card Mistakes You Should Never Make
  • Making minimum payments. While minimum payments may sound like an easy way to repay your debt, it can end up costing you big down the line. ...
  • Making late payments. ...
  • Maxing out your credit limit. ...
  • Applying for too many credit cards. ...
  • Taking out a cash advance.

What is will be your biggest fear when using a credit card?

As Americans' largest fear of owning a credit card is theft and fraud, we wanted to find out where Americans are the least confident when swiping their card. Our poll found that online websites are the leading area where Americans are afraid to use their card, with gas stations coming in second.

Why does credit card debt grow so quickly?

In that case, the credit card company charges interest on your unpaid balance and adds that charge to your balance. So if you don't pay off your balance in full the following month, you'll end up paying interest on your interest. This is how credit card balances can grow rapidly and sometimes get out of hand.

What is the 28 36 rule?

A Critical Number For Homebuyers

One way to decide how much of your income should go toward your mortgage is to use the 28/36 rule. According to this rule, your mortgage payment shouldn't be more than 28% of your monthly pre-tax income and 36% of your total debt. This is also known as the debt-to-income (DTI) ratio.

What is the maximum amount you should ever owe on a credit card with a $1000 credit limit?

Never owe more than 20% or your credit limit. Ex: if you have a card with a $1000 credit limit, you should never owe more than $200 on that card. Charge more than 20% and your credit score can fall, even though the credit compant gave you a bigger credit limit.

How much debt does the average American have 2020?

The average American has $90,460 in debt, according to a 2021 CNBC report. That included all types of consumer debt products, from credit cards to personal loans, mortgages and student debt. The average amount of debt by generation in 2020: Gen Z (ages 18 to 23): $16,043.

What is the avalanche method?

The debt avalanche method involves making minimum payments on all debt, then using any extra funds to pay off the debt with the highest interest rate. The debt snowball method involves making minimum payments on all debt, then paying off the smallest debts first before moving on to bigger ones.

What is the 20 10 Rule of credit?

This means that total household debt (not including house payments) shouldn't exceed 20% of your net household income. (Your net income is how much you actually “bring home” after taxes in your paycheck.) Ideally, monthly payments shouldn't exceed 10% of the NET amount you bring home.