Credit card debt is something that torments many Americans, but how much you owe significantly depends on where you live. Some states have low debt levels, making it easier for residents to stay on top of their finances. Others face higher debt, making financial freedom seem out of reach.
We have researched various online forums and surveys, including one by Wallethub, to create a list of 12 states with the highest and lowest credit card debts.
Iowa
If you live in Iowa, you’re in a good spot for credit card debt. With a median credit card debt of just $2,187, Iowa has the lowest debt in the country. A significant factor contributing to this is the lower cost of living, which is 7% below the national average. The largely rural population of Iowa tends to prioritize saving and avoid racking up unnecessary debt.
Expected Payoff Time: 11 months and 15 days
West Virginia
West Virginia also ranks low in median credit card debt, with residents carrying an average debt of $2,261. In 2024, the state saw a 10.8% drop, the most significant decrease in monthly minimum payments by state. Paying off debt brings both intangible and tangible benefits. With fewer debts, your monthly expenses decrease, freeing up personal cash flow. You can also focus on saving for the future and managing daily expenses.
Expected Payoff Time: 11 months and 3 days
Wisconsin
Wisconsin’s strong economy and affordable living costs mean residents can rely less on credit cards to make ends meet. Understandably, the state has a median credit card debt of only $2,269. The state also benefits from a low unemployment rate of just 2.4%, providing financial stability for many households.
Expected Payoff Time: 11 months and 24 days
Kentucky
The low median credit card debt of $2,349 reflects how Kentucky residents emphasize living within their means. Kentucky has the ninth lowest cost of living in the country. The state offers several debt relief options, such as bankruptcy and debt settlement. It also offers free credit counseling sessions to help residents make wise financial decisions.
Expected Payoff Time: 11 months and 10 days
Indiana
Indiana residents benefit from a low median credit card debt of $2,460. Their strong manufacturing sector provides stable employment, which helps residents maintain steady incomes and avoid over-reliance on credit cards. The state also enjoys relatively low housing costs, with a median home sale price of $265,300, allowing residents to save more and allocate more money towards debt repayment rather than everyday expenses.
Expected Payoff Time: 11 months and 29 days
Ohio
Ohio’s median credit card debt is $2,488. The state’s affordable cost of living helps residents manage their finances without relying heavily on credit cards. Many residents have mastered the art of budgeting and handling their credit, which allows them to avoid debt that comes with medical emergencies or poor financial planning.
Expected Payoff Time: 11 months and 19 days
Texas
Texas has the sixth-highest median credit card debt, at $3,174. The diverse population often results in a wide range of financial behaviors. The average total personal consumption cost is $45,114 per year. Residents may face financial challenges due to housing, healthcare, and transportation expenses. As these costs rise, some individuals may use credit cards to cover expenses, contributing to the higher average debt.
Expected Payoff Time: 12 months and 26 days
Georgia
Georgia has a median credit card debt of $3,186. While robust economic growth has led to more opportunities, it has also led to higher costs, with housing prices in major cities like Atlanta increasing by 14.5%. The more Georgia attracts businesses and residents, the more the demand for goods and services increase. That leads to higher expenses and, consequently, higher credit card balances.
Expected Payoff Time: 13 months and 14 days
Connecticut
Connecticut has a median credit card debt of $3,186. Residents spend more on luxury goods and services, leading to higher credit card balances. Connecticut also has some of the highest tuition fees for colleges and universities. The majority of colleges in the state cost above $60,000. The burden of educational expenses can lead to higher credit card debt as residents manage these costs alongside other financial obligations.
Expected Payoff Time: 13 months and 19 days
Colorado
Colorado’s thriving economy comes with a trade-off: the median credit card debt is $3,254, reflecting the high cost of living. Residents face significant financial pressures, with average annual expenses of $53,374 per person and high utility and transportation costs. The flat income tax rate of 4.4% impacts overall disposable income. These factors contribute to higher credit card balances, making careful budgeting and strategic debt management crucial.
Expected Payoff Time: 14 months and 11 days
District of Columbia
The District of Columbia faces one of the highest credit card debt problems, with a median debt of $3,613. Residents use an average of three credit cards each. Despite earning more on average than many states, D.C. residents make smaller monthly payments on their credit card debt. At a monthly fee of $250, clearing their debt would take approximately 17 months.
Expected Payoff Time: 16 months and 23 days
Alaska
Alaska has the country’s highest median credit card debt, averaging $3,859 per person. This debt is spread across an average of 2.81 credit cards per person. Given the monthly payment of $259, the residents would take more than 17 months to clear their total credit card debt. While paying off the debt during this period, they would accumulate around $635 in interest.
Expected Payoff Time: 17 months and 11 days