The Fool reports on the seemingly colossal credit card debt figures in the United States. A staggering $1.08 trillion is the record amount consumers owe on their credit cards, with the average American carrying a debt burden of $6,365. Our comprehensive review delves into the latest data sourced from government agencies and credit bureaus, providing a detailed exploration of the current state of U.S. credit card debt. Continue reading for an in-depth analysis of the most recent credit card debt statistics.
Alaska
Top of the list for average credit card debt is Alaska, where residents shoulder an average burden of $7,338. Fortune’s findings reveal a broader national perspective, with Americans holding a staggering average credit card debt of over $9,000 per household. Surprisingly, only 14% of individuals express significant concern, stating they are “apprehensive” about their debt. This statistic suggests a considerable portion of the population maintains a relatively calm outlook despite the substantial financial obligations reflected in the national average.
District of Columbia
With an average credit card debt of $6,043, the District of Columbia stands among regions grappling with financial burdens. CNN’s report notes a recent increase by the Fed in lending rates, impacting the costs borne by consumers. Historically, when the Fed adjusts rates, banks adjust their lending rates accordingly. This translates to heightened expenses for consumer debt, particularly variable-rate credit card debt. The rate shift underscores the potential escalation in financial strain for individuals managing such variable-rate obligations.
Connecticut
Securing the third spot is Connecticut, where the average debt hovers around $6,825, signifying the financial obligations shouldered by its residents. The Fool provides additional insights, indicating a notable increase in the average credit utilization rate, now at 28% as of 2023—a rise of 2.5% from 2021. This crucial metric, the credit utilization ratio, computes credit card balances against credit limits. For instance, if a credit card has a $1,000 balance against a $10,000 limit, the credit utilization would be 10%.
New Jersey
New Jersey mirrors the financial landscape of Connecticut, with a national average debt of $6,819, highlighting the economic similarities between the two states. As reported by WRNJ radio, 39.7% of adults in New Jersey resort to using credit cards for essential living expenses, shedding light on the widespread reliance on credit to meet basic financial needs. This statistic underscores the critical role credit cards play in facilitating day-to-day living for a significant portion of the adult population in New Jersey.
Maryland
Maryland residents face an average credit card debt of $6,668, reflecting the financial commitments carried by the state’s populace. Statista’s findings shed light on the broader fiscal landscape, revealing that in the fiscal year 2022, Maryland’s state debt reached approximately 30.42 billion U.S. dollars. This starkly contrasts with the state’s debt of around 11.37 billion U.S. dollars in 2000, underscoring a substantial increase in fiscal obligations over the years. The data emphasizes Maryland’s evolving financial challenges at both individual and state levels.
Texas
Within the expansive state of Texas, the national average credit card debt stands at $6,542, portraying the financial landscape experienced by its residents. The Houston Chronicle highlights a trend where Texans, grappling with increased costs in essentials like shelter, food, and energy, increasingly resort to credit cards for these expenditures. This observation underscores households’ financial strain in Texas, with credit cards becoming a practical solution amidst the challenges of elevated living expenses.
Virginia
In Virginia, the average credit card debt stands at $6,477, indicating the financial commitments carried by its residents. This figure sheds light on the state’s economic landscape, highlighting the prevalence of credit card obligations among Virginians. The average debt serves as a benchmark, offering insight into the financial dynamics at play within the state. Understanding these figures is crucial for individuals and policymakers alike to navigate and address Virginia’s economic challenges associated with credit card usage.
Florida
Florida maintains an average credit card debt of $6,408, underscoring the financial landscape of its residents. A notable trend within the state, particularly in the Tampa Bay area, is the heightened percentage of residents acquiring new credit cards in 2023. This observation suggests an ongoing reliance on credit instruments for financial transactions and obligations. The figures shed light on the economic behaviors and financial decisions made by individuals in Florida, with implications for both individual households and the broader economic landscape.
Hawaii
Hawaii joins the national landscape with an average credit card debt of $6,343, providing insight into the financial commitments carried by its residents. The fiscal landscape of the Aloha State is notable, particularly in mortgage debt, which in 2021 amounted to $68.8 billion, constituting 78.28% of Hawaii’s total debt balance. This figure far surpasses the single-digit percentages associated with other credit categories. Over the years, per capita debt in Hawaii has consistently grown, reaching $77,410 in 2021, in contrast to the national average of $55,480.
Colorado
Colorado records an average credit card debt of $6,274, highlighting the financial obligations of its residents. A noteworthy insight from WalletHub reveals that individuals between the ages of 30 and 59 carry an average credit card debt of 132.95% higher than their older and younger counterparts. This statistic underscores age’s significant role in shaping credit card debt dynamics, with the burden disproportionately borne by those within the mentioned age bracket. Examining the latest averages across age groups provides a nuanced perspective on credit card debt distribution.
New York
The credit card debt in New York averages $6,269, just over $1,000 behind the highest-ranking Alaska. The financial landscape in New York is marked by 6.5% of residents experiencing at least a 30-day delay in credit card payments. On average, each person in the state holds approximately 6.1 credit cards, emphasizing the widespread use of multiple credit instruments. These figures offer insight into the credit dynamics within New York, reflecting both the extent of debt and the payment behavior of its residents.
Georgia
Reflecting the financial landscape of Georgia, the average debt stands at $6,265. According to WalletHub, consumers managing credit card debt face an annual interest rate exceeding 20%. This high-interest environment underscores the increasing value of balance transfer credit card offers featuring 0% introductory APRs. Such offers provide a crucial tool for individuals seeking to navigate and mitigate the financial challenges associated with elevated interest rates, offering a potential solution for those grappling with credit card debt.
Nevada
Nevada’s average national credit card debt stands at $6,176. Considering Las Vegas as the focal point of the state, it’s notable that casinos in the region accept credit cards. Nevertheless, restrictions exist on their usage. Notably, one must refrain from using a credit card to acquire casino chips. This delineation emphasizes the regulated nature of credit card transactions within the context of Las Vegas casinos, adding a layer of complexity to financial transactions in this prominent entertainment hub.
Massachusetts
Massachusetts residents face notable financial obligations, with an average credit card debt of $6,046. According to The Fool’s findings, the average annual percentage rate (APR) for interest-bearing credit card accounts currently stands at 22.16% as of the second quarter of 2023. This statistic reveals a substantial increase in credit card interest rates since 2021, aligning with the Federal Reserve’s decisions to raise interest rates. The escalating APR underscores the financial challenges confronting individuals managing credit card balances in Massachusetts, adding a layer of complexity to debt management.
Washington
Washington’s residents, as reported, grapple with an average credit card debt of $6,043. This figure signifies the financial commitments carried by individuals within the state, portraying a snapshot of the economic landscape. Understanding the average credit card debt is essential for residents and policymakers, providing insights into the state’s financial dynamics. The data serves as a practical indicator, helping individuals and authorities navigate the challenges and opportunities associated with credit card usage in Washington.
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