Average Credit Card Debt by State (2024)

Credit card debt in the United States has reached unprecedented levels, with significant variations across different states. As of the third quarter of 2024, the average credit card balance per cardholder was $6,380, marking a substantial increase from previous years.

Top 3 States With the Highest Credit Card Debt

1. Alaska: With an average debt of $7,300, Alaska leads the nation in credit card debt. This is likely due to the higher cost of living and increased reliance on credit for everyday expenses in remote areas.
2. District of Columbia (D.C.): The nation's capital averages $7,100 in credit card debt per cardholder. The urban setting and higher income levels may contribute to larger balances.
3. Hawaii: At $6,700, Hawaii rounds out the top three. The state's high cost of living, driven by its geographic isolation and reliance on imports, plays a major role in elevated credit card use.

Top 3 States With the Lowest Credit Card Debt

1. Wisconsin: Leading the states with the lowest debt, Wisconsin averages only $4,900 per cardholder. Strong financial literacy programs and lower cost-of-living expenses contribute to this figure.
2. Iowa: With an average debt of $5,100, Iowa benefits from a predominantly rural economy and conservative spending habits.
3. Kentucky: Matching Iowa at $5,100, Kentucky's lower debt levels reflect a mix of moderate income levels and reduced housing and living costs.

Factors Influencing Credit Card Debt

• Cost of Living: High-cost states like Alaska, Hawaii, and D.C. see higher credit card balances as residents rely on credit to bridge income gaps.
• Income Levels: Wealthier areas often experience higher spending—and higher debt balances—though these are typically offset by higher repayment rates.
• Financial Literacy: States like Wisconsin and Iowa demonstrate the benefits of strong financial education and conservative fiscal habits.
• Regional Economics: Rural and lower-cost states tend to have smaller balances due to lower living expenses and more cautious spending.

What This Means for You

Credit card debt is a growing challenge for Americans, with national trends reflecting both economic pressures and personal financial habits. Understanding how your state compares can help you assess your own spending and repayment strategies.

If you’re looking to tackle credit card debt, consider the following tips:

• Create a Budget: Track your expenses to identify areas where you can cut back.
• Pay More Than the Minimum: Even small additional payments can reduce interest charges and accelerate debt payoff.
• Consider Debt Consolidation: For those with high balances, consolidation can lower interest rates and simplify payments.
• Focus on Financial Education: Building financial literacy is a long-term solution to avoiding debt traps.

National Trends

Overall, U.S. credit card debt has been on the rise, reaching a total of $1.17 trillion in the second quarter of 2024—a 20-year high. This trend underscores the importance of financial literacy and responsible credit management to mitigate escalating debt levels.

Understanding these state-by-state differences is crucial for policymakers and financial institutions aiming to address the root causes of credit card debt and to develop targeted strategies for financial education and debt reduction.