Georgia Ranks Number 15 for Credit Card Debt

Georgia Ranks Number 15 for Credit Card Debt

Americans are known for racking up credit-card debt, but just how much we have in total is shocking. At the beginning of 2019, Americans owed over $1 trillion in credit-card debt. And though we repaid $38.2 billion in the first quarter of the year, we’re projected to have a $70 billion net increase by the end of the year.

Americans aren’t all in the same boat when it comes to credit card debt, though. People in some states are better than others when it comes to avoiding charging more than they can afford. To determine which states have the least and most sustainable credit-card debts, WalletHub drew upon TransUnion credit data to calculate the cost and time required to pay off the median card balances of each of the 50 states and the District of Columbia. Read on for the full findings, commentary from a panel of experts and a detailed description of our methodology.

States with the Highest & Lowest Credit-Card Debts

Rank* State Median Credit-Card Debt Cost to Pay off Months & Days Until Payoff
1 Alaska $4,144 $575 19 months and 11 days
2 District of Columbia $3,242 $404 17 months and 12 days
3 Vermont $2,227 $247 15 months and 14 days
4 Washington $2,880 $313 15 months and 3 days
5 Colorado $2,985 $324 15 months and 3 days
6 Oregon $2,641 $282 14 months and 29 days
7 Wyoming $2,712 $290 14 months and 29 days
8 Virginia $3,081 $327 14 months and 26 days
9 Montana $2,579 $269 14 months and 17 days
10 New Mexico $2,613 $268 14 months and 7 days
11 Kansas $2,574 $264 14 months and 7 days
12 Texas $2,860 $292 14 months and 4 days
13 Idaho $2,426 $247 14 months and 4 days
14 North Dakota $2,385 $236 13 months and 24 days
15 Georgia $2,786 $274 13 months and 22 days
16 Utah $2,508 $246 13 months and 20 days
17 Massachusetts $2,459 $241 13 months and 19 days
18 California $2,672 $261 13 months and 18 days
19 Arizona $2,686 $262 13 months and 17 days
20 Minnesota $2,510 $245 13 months and 17 days
21 Oklahoma $2,628 $255 13 months and 15 days
22 North Carolina $2,593 $251 13 months and 14 days
23 New Hampshire $2,511 $242 13 months and 11 days
24 Nevada $2,645 $254 13 months and 9 days
25 Maryland $2,819 $270 13 months and 8 days
26 Tennessee $2,544 $243 13 months and 8 days
27 Michigan $2,343 $224 13 months and 7 days
28 South Carolina $2,579 $245 13 months and 4 days
29 Maine $2,265 $214 13 months and 2 days
30 Connecticut $2,755 $260 13 months
31 Wisconsin $2,120 $197 12 months and 29 days
32 Missouri $2,460 $228 12 months and 29 days
33 Florida $2,603 $239 12 months and 22 days
34 New York $2,600 $238 12 months and 22 days
35 Louisiana $2,600 $237 12 months and 19 days
36 New Jersey $2,701 $246 12 months and 19 days
37 Illinois $2,665 $241 12 months and 17 days
38 Rhode Island $2,392 $216 12 months and 15 days
39 Iowa $2,091 $188 12 months and 14 days
40 West Virginia $2,331 $210 12 months and 14 days
41 Nebraska $2,302 $207 12 months and 13 days
42 Ohio $2,325 $207 12 months and 9 days
43 Arkansas $2,353 $202 11 months and 29 days
44 Hawaii $2,868 $246 11 months and 28 days
45 South Dakota $2,449 $209 11 months and 25 days
46 Delaware $2,515 $213 11 months and 23 days
47 Pennsylvania $2,344 $198 11 months and 21 days
48 Alabama $2,451 $206 11 months and 19 days
49 Kentucky $2,248 $187 11 months and 14 days
50 Mississippi $2,258 $170 10 months and 9 days
51 Indiana $2,313 $167 9 months and 29 days

*1 = Least Sustainable Credit-Card Debt

 

Methodology

In order to determine the states with the most and least sustainable credit-card debts, we first looked at the median credit-card balances and credit card payments of residents in each of 50 states and the District of Columbia as of September 2018, based on TransUnion data. Our analysis includes credit cards that carried a balance and excludes store cards.

Using the median credit-card balance and monthly credit card payment of residents in each state, we determined the required number of months to pay off that balance and the resulting finance charges. In order to do so, we made the following assumption:

  • Consumers would pay an average 16.91 percent interest rate, based on the APR paid by existing cardholders, according to the average interest rate assessed on accounts with finance charges. Using that percentage, we computed the cost of paying off the state’s median credit-card balance.

Finally, we ranked the states based on the calculator’s outputs. Rank 1 corresponds with the state with the least sustainable credit card debt — that is, the state with the longest payoff timeline.

 

Source: WalletHub
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