Kentucky ranks among states with the least credit card debt per borrower

Money experts Moneywise analyzed household debt statistics released in May 2023 by the Federal Reserve Bank of New York to reveal which states have the highest credit card debt per borrower.  

• Study reveals that Alaska has the highest proportion of debt, with an average of $4,430 per borrower.
  
• Mississippi has the lowest proportion of debt, with an average of $2,450 per borrower.
  
• New Jersey, Maryland and Connecticut also rank as states with high debt levels per borrower. 

The study revealed that Alaska is the top state with the most debt. As of December 2022, each borrower in Alaska has an average of $4,430 in debt, which is 9% higher than the previous year. Statewide, the current average total debt for borrowers in Alaska is $67,670, which includes an average of any student loan, auto, credit card and mortgage debt.

Hawaii ranked next as the second state with the largest credit card debt per borrower. The state has an average of $4,260 in credit card debt, a staggering 14% increase compared to the previous year. The study also uncovered that out of all states, Hawaii ranks as the third state with the most total debt per borrower, averaging out to $82,650.  

New Jersey ranks third with the most credit card debt per borrower, averaging $4,220, 14% higher than the previous year. The state has an average of $66,800 in total debt per borrower.   

Maryland ranks fourth, with an average of $4,190 in credit card debt per borrower and is followed by Connecticut, which has an average of $4,040 per borrower. The top 10 is rounded out with New York ranking sixth, Virginia ranking seventh, and Colorado, Florida and California ranking eighth, ninth and tenth, respectively.   

States with the most credit card debt (2022) 

 Looking at the other end of the rankings, Mississippi places first as the state with the lowest amount of credit card debt in the country. On average, each borrower has $2,450 in credit card debt; although this is lower compared to other states, it is still a 14% increase compared to the previous year. Additionally, out of all 50 states, Mississippi ranks second to last when comparing the total debt per borrower, averaging $38,130.   

West Virginia ranks second with an average of $2,540 in credit card debt per borrower, a 13% increase from the previous year. In addition to ranking second for the least credit card debt per borrower, West Virginia is the state with the lowest amount of total debt compared to all states, with each borrower having $34,210 in total debt, which is 62% less than the state with the total debt per borrower.   

Kentucky ranks third with the lowest credit card debt, with an average of $2,590 per borrower, 13% higher than the previous year. Kentucky has an average of $40,290 in total debt per borrower. 

Arkansas ranks fourth with an average of $2,670 per borrower, followed by Alabama, which has an average of $2,690 per borrower. The top 10 is closed with Iowa ranking sixth, Indiana ranking seventh and Wisconsin, Oklahoma and Tennessee making up the remaining ranks, respectively. 

States with the least credit card debt (2022) 

 Commenting on this data, a spokesperson for Moneywise says: “The average amount of debt per person has slowly crept up year by year, and this cycle will continue as prices for everyday goods simultaneously increase too. According to the Consumer Financial Protection Bureau, Americans pay nearly $120 billion in annual credit card fees and interest.” 

“Unfortunately, credit card debt has become a norm as people need to borrow money for day-to-day spending. The most common expenses on credit cards are for unexpected emergencies, medical bills and groceries. The main culprit for total debt for Americans is mortgages, exceeding other types of debts by a wide margin, followed by student loan debt.