America is infamous for having the highest credit card debts in the world. However, this information didn’t stop the citizens from increasing their debt. Today, we will look at the 15 states with the highest credit card debt increase in the last year according to wallethub
Oregon
Oregon experienced the highest increase in credit card debt in the last quarter of 2023. With a steep increase of 7.8%, the state ranks high on the list. The credit card fraud in the state also increased by 51% in the last year. This is also thought to be the reason behind Oregon’s increasing credit card debt.
California
California is known for being ridiculously expensive to live in. Therefore, it is expected to rank high on this list. In the last quarter of 2023, the average credit card debt increased by 5.4%. The state has an average credit score of 680. This helps explain the high credit card debt that keeps increasing every year.
Massachusetts
Unfortunately, the economy took a dip in this state. Massachusetts faced an increase of 5.2% in their credit card debts in the last quarter of 2023. Despite being the second wealthiest state in the US, the average FICO credit score is only 704.
Pennsylvania
In the third quarter of 2023, Pennsylvania ranked 6th state with the highest credit card debt. The situation didn’t improve much in Q4, as their debt in the last quarter of 2023 increased by 3.9%. It can be due to the average cost of living here. It is above the national average, while the income is still below.
South Dakota
While the cost of living is low, fewer high-paying jobs were available. This leads to reliance on credit cards to maintain a desired lifestyle. Last year, in the period of Q3-Q4, the state’s credit card debt increased by 4.4%. Plus, the average income in South Dakota is also below the national average. This may be making netizens unable to pay back.
Colorado
This nature-filled mountain state in the US is also drowning in high credit card debt. It experienced a 3.5% increase in credit card debt in last year’s Q4. Places like The City of Aurora have ridiculously high credit card debts. The average residents of this city owe approximately $14,199 in credit card debt.
Utah
This landlocked state in the Mountain West witnessed an increase of 3.3% in its credit card debt last year. It is difficult to point out the reason. The state’s income is above the national average, and living expenses are below. However, one possible reason can be the high number of youth living in the state. It is assumed that the young population may be more prone to credit card usage. This might be causing this debt to increase.
Virginia
Virginia has a cost of living that’s above the national average. This is particularly true in Northern Virginia, near Washington, D.C . This can be a potential reason for the residents to rely more on credit cards. In 2023’s Q4, the state had an increase of 3.1% in its credit card debt. The state also has many colleges and universities. This potentially contributes to a student loan burden that impacts credit card use.
Connecticut
In the period of Q3-Q4, Connecticut had a significant 2.8% increase in its average credit card debt. News presented that the state’s credit card debt is 29% higher than the national average. Shockingly, it is even higher than New York City.
Wyoming
Despite a higher average income, Wyoming has a relatively small population. This can cause limited stores or services. Therefore, the residents may be relying more on online shopping and credit cards. However, the low population didn’t prevent the 2.3% increase in credit card debt.
New Jersey
New Jersey ranks fairly high on the list of credit card debts in America. In the Q4 of 2023, the state had a 1.7% increase in its credit card debt. There can be multiple reasons behind it. Some of them are the high cost of living relative to income, potential debt culture, and student loan burden.
Minnesota
This state has an increase of 1.4% in its credit card debt. Minnesota has a high number of college graduates, and student loan debt could be a significant burden for many residents. This can cause heavy reliance on credit cards. Also, if the cards are mostly used by students who are already in debt, the chances of delinquency increase.
Maryland
Even though Maryland had a 1.3% decrease in credit card debt in Q3-Q4, it was still higher than most states in America. It can be because 39.1% of adults here use credit cards to cover all their expenses. Sadly, 62.5% of those severely struggle to repay their debts. This is a major cause behind the state’s high credit card debts.
New York
New York also had a decrease of 1.3% in its average credit card debt. However, that didn’t change the fact that it is still one of the states with the highest credit card debts. Although the state boasts an above-average income, the cost of living remains even higher.
Texas
Texas has been infamous for having high credit card debt delinquency rates since 2009, and the situation has never improved. Even in last year’s final quarter, the state had a 1.3% increase in its average credit card debt. Experts suggest that this increase is due to the rising inflation rates in the state. The high inflation rates pushed 22% of Texas adults to increase their credit card usage.
