More People Are Defaulting On Credit Cards – The Best And Worst States With Credit Card Debt

by 3 months ago

Despite the economy showing numerous indicators that it is flourishing, many Americans are defaulting on their credit cards. Industry experts find that more people are having trouble paying bills compared to last year.

“I would say that credit card defaults are definitely a cause for concern,” said Joe Resendiz, an analyst with ValuePenguin, a company that tracks consumer spending and provides financial data about credit cards, banking, investing, and small business.

Despite a very positive second quarter financial report, the amount of in-default charge card bills rose by 10 percent for Bank of America and 9 percent for JPMorgan compared to the same period in 2017. ValuePenguin noted that the credit card debt of subprime borrowers increased by 26 percent.

This was the seventh straight quarterly increase, but it should be noted that it is far from the abysmal numbers from the Great Recession where default rates were well over 10 percent. LendingTree.com, the leading online loan marketplace with one of the largest networks of lenders in the nation, reported a $16.25 billion increase in revolving debt in May.

“This was the biggest May jump since 1995,” LendingTree said. Revolving debt refers to money you owe from an account that allows you to borrow against a credit line and that is carried from month to month, usually, these at high interest rates. Revolving in addition to non-revolving debt is currently at $3.86 trillion according to LendingTree, and it predicts this figure will surpass $4 trillion this year.

The average American indebted household debt is $5,700. As of April 2018, the average credit card debt for households who pay their balances in full every month is $9,333. The study found that 41 percent of all households carry some sort of credit card debt.

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The areas with the highest average credit card debt were the Northeast and West Coast, both averaging over $8,000. As far as states go, Alaska was the worst with an average credit card debt of $13,048. The best average credit card debt was in Ohio where they only owed $5,446.

Here is the average credit card debt in every state, ranked from lowest to highest. You can read ValuePenguin’s full report on credit card debt HERE.

51. Ohio – Average credit card debt: $5,446

50. South Carolina – Average credit card debt: $5,801

49. Maine – Average credit card debt: $5,803

48. Pennsylvania – Average credit card debt: $6,065

47. Michigan – Average credit card debt: $6,082

46. Rhode Island – Average credit card debt: $6,104

45. Nebraska – Average credit card debt: $6,180

44. Tennessee – Average credit card debt: $6,217

43. Massachusetts – Average credit card debt: $6,277

42. Wisconsin – Average credit card debt: $6,484

41. Missouri – Average credit card debt: $6,491

40. Vermont – Average credit card debt: $6,545

39. Mississippi – Average credit card debt: $6,673

38. Iowa – Average credit card debt: $6,696

37. Arkansas – Average credit card debt: $6,747

36. Minnesota – Average credit card debt: $6,761

35. New Hampshire – Average credit card debt: $6,838

34. Indiana – Average credit card debt: $6,958

33. Kansas – Average credit card debt: $7,040

32. West Virginia – Average credit card debt: $7,090

31. Georgia – Average credit card debt: $7,090

30. Arizona – Average credit card debt: $7,100

29. Alabama – Average credit card debt: $7,105

28. Delaware – Average credit card debt: $7,158

27. Kentucky – Average credit card debt: $7,190

26. North Carolina – Average credit card debt: $7,225

25. Louisiana – Average credit card debt: $7,260

24. Illinois – Average credit card debt: $7,278

23. Connecticut – Average credit card debt: $7,304

22. South Dakota – Average credit card debt: $7,362

21. Texas – Average credit card debt: $7,692

20. Virginia – Average credit card debt: $7,867

19. Nevada – Average credit card debt: $7,871

18. Maryland – Average credit card debt: $7,913

17. New Mexico – Average credit card debt: $7,952

16. Oklahoma – Average credit card debt: $8,059

15. Washington – Average credit card debt: $8,108

14. Washington, DC – Average credit card debt: $8,291

13. Hawaii – Average credit card debt: $8,315

12. Florida – Average credit card debt: $8,444

11. North Dakota – Average credit card debt: $8,450

10. Idaho – Average credit card debt: $8,570

9. Oregon – Average credit card debt: $8,619

8. New York – Average credit card debt: $8,764

7. Colorado – Average credit card debt: $9,108

6. New Jersey – Average credit card debt: $9,454

5. Montana – Average credit card debt: $9,759

4. California – Average credit card debt: $10,496

3. Utah – Average credit card debt: $11,222

2. Wyoming – Average credit card debt: $11,546

1. Alaska – Average credit card debt: $13,048


TAGSCredit Card DebtCredit cardsDebtfinancial advice

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