10 States with the Highest Average Credit Card Debt
States with higher costs of living, larger urban populations, and higher median incomes tend to carry more credit card debt. Alaska consistently leads due to high cost of living and limited consumer competition.
| Rank | State | Avg. Balance | vs. National |
|---|---|---|---|
| 1 | Alaska | $7,961 | +22% |
| 2 | Connecticut | $7,654 | +18% |
| 3 | New Jersey | $7,579 | +17% |
| 4 | Virginia | $7,431 | +14% |
| 5 | Maryland | $7,370 | +13% |
| 6 | New Hampshire | $7,294 | +12% |
| 7 | Colorado | $7,236 | +11% |
| 8 | Hawaii | $7,189 | +11% |
| 9 | California | $7,104 | +9% |
| 10 | Massachusetts | $7,082 | +9% |
Source: Experian State of Credit report, 2024. National average: $6,501 (TransUnion).
10 States with the Lowest Average Credit Card Debt
States with lower costs of living and more rural populations tend to carry less credit card debt -- though that does not mean the debt is more manageable. A $5,000 balance at 23% APR is a serious burden in a state where the median household income is $45,000.
| Rank | State | Avg. Balance | vs. National |
|---|---|---|---|
| 51 | Mississippi | $4,784 | -26% |
| 50 | Iowa | $4,952 | -24% |
| 49 | Wisconsin | $5,087 | -22% |
| 48 | Kentucky | $5,126 | -21% |
| 47 | West Virginia | $5,145 | -21% |
| 46 | Indiana | $5,213 | -20% |
| 45 | Arkansas | $5,247 | -19% |
| 44 | Maine | $5,298 | -19% |
| 43 | South Dakota | $5,312 | -18% |
| 42 | Nebraska | $5,345 | -18% |
Source: Experian State of Credit report, 2024. Includes D.C.
Why State Averages Vary
Several factors drive state-level differences in credit card debt:
- Cost of living: In high-cost states, residents put more on credit cards for basics like groceries, gas, and utilities.
- Median income: Higher-income states often have higher credit limits, which leads to higher balances.
- Credit access: States with higher average credit scores tend to have more available credit -- and more utilization.
- Financial literacy: States with stronger financial education requirements tend to show somewhat lower credit card debt levels.
- State bankruptcy exemptions: States with generous exemptions may see different filing patterns, which affects the debt landscape.
Important context: "Average" does not mean "manageable." A $5,000 balance in Mississippi (median household income $49,111) represents a larger burden than a $7,500 balance in Connecticut (median household income $90,213). Always consider debt relative to income.
What Does Your State's Debt Mean for Bankruptcy?
Bankruptcy eligibility through the means test is calculated using your state's median income. In lower-income states where debt may be lower in absolute terms but higher relative to income, more residents may actually qualify for Chapter 7.
For state-specific bankruptcy filing rates and Chapter 7 vs. Chapter 13 patterns, see 1328f.com.