Credit Card Debt by State
It seems that the warmer Americans get, the greater their chances are of carrying a heavy credit card debt burden.
At least that’s one theory we have after reading CreditCards.com’s latest report on credit card debt burden by state.
According to the report, Florida, Texas, Georgia and New Mexico have four of the nation’s five highest credit card debt burdens.
CreditCards.com points out that southern states at the bottom of the list suffered more from low incomes than high debts.
For example, Florida’s average credit card debt per bank cardholder ranks a respectable 18th among the 50 states, but its median income is 41st.
Here are the top/bottom five states:
Highest Credit Card Debt Burdens
- Alaska (20 months, $992 interest)
- New Mexico (20 months, $743 interest)
- Georgia (18 months, $716 interest)
- Texas (18 months, $712 interest)
- Florida (18 months, $678 interest)
Lowest Credit Card Debt Burdens
- Wisconsin (14 months, $421 interest)
- Massachusetts (13 months, $482 interest)
- Minnesota (13 months, $458 interest)
- Iowa (13 months, $379 interest)
- North Dakota (12 months, $370 interest)
CreditCards.com calculated these payoff times and interest charges using the average credit card debt per bank cardholder (according to Experian) and the median income per resident with earnings (courtesy of the U.S. Census) in each state.
In making these determinations, CreditCards.com assumed that 15% of gross monthly income would go towards credit card debt. For the average credit card interest rate, CreditCards.com used 15%, the average charged by 100 popular cards that it surveyed on December 7, 2016.
Well, there you have it. With holiday spending almost over, we sure hope you showed a little restraint this season.
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