(TransUnion Q3 2024)
5 States with the Highest Credit Card Debt
States at the top share common traits: high cost of living, large urban populations, and above-average household incomes that translate to higher credit limits and higher utilization.
| Rank | State | Avg. Balance | Median Income | vs. National |
|---|---|---|---|---|
| 1 | Alaska | $7,961 | $86,370 | +22.4% |
| 2 | Connecticut | $7,654 | $90,213 | +17.7% |
| 3 | New Jersey | $7,579 | $89,703 | +16.6% |
| 4 | Virginia | $7,431 | $83,725 | +14.3% |
| 5 | Maryland | $7,370 | $90,203 | +13.4% |
Why Alaska? Alaska's remote geography drives up prices on everything from groceries to fuel. Residents rely heavily on credit cards for everyday purchases. Limited retail competition means fewer promotional offers and balance transfer options.
5 States with the Lowest Credit Card Debt
Lower balances do not always mean better financial health. These states also tend to have lower incomes, meaning the debt they do carry may be just as burdensome relative to what they earn.
| Rank | State | Avg. Balance | Median Income | vs. National |
|---|---|---|---|---|
| 51 | Mississippi | $4,784 | $49,111 | -26.4% |
| 50 | Iowa | $4,952 | $67,684 | -23.8% |
| 49 | Wisconsin | $5,087 | $67,125 | -21.7% |
| 48 | Kentucky | $5,126 | $55,629 | -21.1% |
| 47 | West Virginia | $5,145 | $48,037 | -20.9% |
Context matters: Mississippi's $4,784 average balance represents 9.7% of the state's median household income. Connecticut's $7,654 balance represents only 8.5% of its median income. Lower absolute debt does not mean easier debt. For state-specific bankruptcy exemptions, see our exemption guide.
All 50 States + DC - Complete Credit Card Debt Rankings
Average credit card balance per cardholder, ranked highest to lowest. Median household income from the U.S. Census Bureau (2023 ACS). The debt-to-income column shows the balance as a percentage of annual median household income.
| # | State | Avg. Balance | Median HH Income | Debt/Income | vs. National |
|---|---|---|---|---|---|
| 1 | Alaska | $7,961 | $86,370 | 9.2% | +22.4% |
| 2 | Connecticut | $7,654 | $90,213 | 8.5% | +17.7% |
| 3 | New Jersey | $7,579 | $89,703 | 8.4% | +16.6% |
| 4 | Virginia | $7,431 | $83,725 | 8.9% | +14.3% |
| 5 | Maryland | $7,370 | $90,203 | 8.2% | +13.4% |
| 6 | New Hampshire | $7,294 | $88,841 | 8.2% | +12.2% |
| 7 | Colorado | $7,236 | $82,254 | 8.8% | +11.3% |
| 8 | Hawaii | $7,189 | $88,005 | 8.2% | +10.6% |
| 9 | California | $7,104 | $84,097 | 8.4% | +9.3% |
| 10 | Massachusetts | $7,082 | $93,550 | 7.6% | +8.9% |
| 11 | Washington | $6,989 | $85,390 | 8.2% | +7.5% |
| 12 | New York | $6,945 | $75,157 | 9.2% | +6.8% |
| 13 | Texas | $6,901 | $67,321 | 10.3% | +6.2% |
| 14 | District of Columbia | $6,876 | $101,722 | 6.8% | +5.8% |
| 15 | Georgia | $6,842 | $66,559 | 10.3% | +5.2% |
| 16 | Delaware | $6,798 | $73,305 | 9.3% | +4.6% |
| 17 | Florida | $6,756 | $63,062 | 10.7% | +3.9% |
| 18 | Rhode Island | $6,712 | $72,305 | 9.3% | +3.2% |
| 19 | Illinois | $6,689 | $72,563 | 9.2% | +2.9% |
| 20 | Arizona | $6,645 | $65,913 | 10.1% | +2.2% |
| 21 | Pennsylvania | $6,601 | $68,957 | 9.6% | +1.5% |
| 22 | Nevada | $6,578 | $66,274 | 9.9% | +1.2% |
| 23 | Oregon | $6,534 | $71,562 | 9.1% | +0.5% |
| 24 | Utah | $6,501 | $78,132 | 8.3% | 0.0% |
| 25 | North Carolina | $6,467 | $61,972 | 10.4% | -0.5% |
| 26 | South Carolina | $6,423 | $59,318 | 10.8% | -1.2% |
| 27 | Tennessee | $6,389 | $59,695 | 10.7% | -1.7% |
| 28 | Minnesota | $6,345 | $80,441 | 7.9% | -2.4% |
| 29 | Louisiana | $6,312 | $52,087 | 12.1% | -2.9% |
| 30 | Michigan | $6,278 | $63,498 | 9.9% | -3.4% |
| 31 | Oklahoma | $6,234 | $57,713 | 10.8% | -4.1% |
| 32 | Alabama | $6,189 | $55,869 | 11.1% | -4.8% |
| 33 | Kansas | $6,145 | $66,178 | 9.3% | -5.5% |
| 34 | Missouri | $6,098 | $61,847 | 9.9% | -6.2% |
| 35 | New Mexico | $6,056 | $53,992 | 11.2% | -6.8% |
| 36 | Ohio | $6,012 | $62,262 | 9.7% | -7.5% |
| 37 | Vermont | $5,978 | $68,190 | 8.8% | -8.0% |
| 38 | Montana | $5,934 | $62,205 | 9.5% | -8.7% |
| 39 | Idaho | $5,889 | $63,377 | 9.3% | -9.4% |
| 40 | Wyoming | $5,845 | $68,002 | 8.6% | -10.1% |
| 41 | North Dakota | $5,801 | $68,131 | 8.5% | -10.8% |
| 42 | Nebraska | $5,345 | $68,490 | 7.8% | -17.8% |
| 43 | South Dakota | $5,312 | $64,019 | 8.3% | -18.3% |
| 44 | Maine | $5,298 | $64,767 | 8.2% | -18.5% |
| 45 | Arkansas | $5,247 | $52,528 | 10.0% | -19.3% |
| 46 | Indiana | $5,213 | $62,743 | 8.3% | -19.8% |
| 47 | West Virginia | $5,145 | $48,037 | 10.7% | -20.9% |
| 48 | Kentucky | $5,126 | $55,629 | 9.2% | -21.1% |
| 49 | Wisconsin | $5,087 | $67,125 | 7.6% | -21.7% |
| 50 | Iowa | $4,952 | $67,684 | 7.3% | -23.8% |
| 51 | Mississippi | $4,784 | $49,111 | 9.7% | -26.4% |
Sources: Experian State of Credit report, 2024. Median household income: U.S. Census Bureau, 2023 American Community Survey. DC included for completeness.
Key Insights from the Data
High Income Does Not Mean Manageable Debt
The debt-to-income column reveals the real story. Louisiana has only the 29th-highest average balance ($6,312) but the highest debt-to-income ratio at 12.1% because of its $52,087 median household income. Meanwhile, Massachusetts ranks 10th in absolute debt ($7,082) but has one of the lowest debt-to-income ratios at 7.6% thanks to $93,550 median income.
Southern States Face the Biggest Burden
States across the South - Alabama, Louisiana, Mississippi, South Carolina, Florida, Georgia, and New Mexico - consistently show debt-to-income ratios above 10%. These are also states with higher per-capita bankruptcy filing rates.
The Exemption Connection
Your state's bankruptcy exemptions determine what you keep if you file. Some states with high debt (Texas, Florida) offer unlimited homestead exemptions, which makes bankruptcy a viable option without losing your home. Other high-debt states (New Jersey, Connecticut) have limited exemptions, which may push filers toward Chapter 13 instead of Chapter 7.
Why State Averages Vary
- Cost of living: In high-cost states, residents put more everyday expenses on credit cards - groceries, gas, utilities, and childcare.
- Median income: Higher-income states generate higher credit limits, which enables higher balances even among responsible borrowers.
- Credit access: States with higher average credit scores have more available credit and higher utilization rates.
- Financial literacy: States with stronger financial education requirements tend to show somewhat lower balances.
- State bankruptcy exemptions: States with generous exemptions may see different filing patterns, which affects the overall debt landscape.
- Urban vs. rural mix: Urban populations carry higher balances due to higher costs and greater access to credit products.
What Your State's Debt Means 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.
Credit card debt is general unsecured debt and is almost always fully dischargeable in bankruptcy. There is no minimum amount of debt required to file.
For state-specific bankruptcy filing rates and Chapter 7 vs. Chapter 13 patterns, see 1328f.com. For understanding whether your debt level warrants considering bankruptcy, see our When to File guide.
Frequently Asked Questions
Which state has the highest average credit card debt?
Alaska leads with an average balance of $7,961 per cardholder, 22% above the national average of $6,501. High cost of living and limited retail competition drive Alaska's elevated balances.
Which state has the lowest credit card debt?
Mississippi has the lowest average at $4,784 - but with a median household income of $49,111, the burden relative to income is comparable to wealthier states with higher balances.
What is the national average credit card debt in 2024?
The national average is $6,501 per cardholder (TransUnion Q3 2024). Total U.S. credit card debt is $1.21 trillion (NY Fed Q4 2024). Average household debt among those carrying balances is approximately $10,479.
Why do some states have higher credit card debt?
Cost of living, median income, credit access, and urban population density all contribute. High-cost states generate higher credit limits and more credit-dependent spending.
Does high credit card debt mean more bankruptcy filings?
Not directly. Bankruptcy filing rates correlate more with debt-to-income ratio than absolute debt. Low-income states like Mississippi and Alabama have some of the highest per-capita filing rates despite lower average balances.
Sources
- Experian, State of Credit Report, 2024
- TransUnion, Credit Industry Insights Report, Q3 2024
- Federal Reserve Bank of New York, Quarterly Report on Household Debt and Credit, Q4 2024
- U.S. Census Bureau, American Community Survey, 2023
- American Bankruptcy Institute, Annual Bankruptcy Filing Statistics