7 States With The Least Credit Card Debt

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Americans really know how to rack up credit card debt: The United States the total exceeded $1 trillion in early 2022. But some states have more manageable debt.

Joh determine the states with the highest and lowest credit card debt, WalletHub used Data from TransUnion for median personal credit card balances in the 50 states and the District of Columbia.

With that number and the monthly credit card payments of those in each state, WalletHub calculated how long it would take to pay off the debt and the fees associated with those payments. To do this, they assumed that consumers paid an interest rate of approximately 16.17%, in accordance with the average interest rate on accounts with financial charges.

WalletHub has ranked the states and the District of Columbia in order of most to least credit card debt based on payment time. The repayment cost is displayed as a negative number because it indicates how much money must be spent on interest to pay off the debt.

These are the seven states with the least credit card debt.

1.Mississippi

  • Median credit card debt: $1,806
  • Cost to be reimbursed: -$121
  • Time until payment: 9 months and 18 days

2.Arkansas

  • Median credit card debt: $1,949
  • Cost to be reimbursed: -$144
  • Time until payment: 10 months and 19 days

3. West Virginia

  • Median credit card debt: $1,860
  • Cost to be reimbursed: -$140
  • Time until payment: 10 months and 27 days

4.Iowa

  • Median credit card debt: $1,809
  • Cost to be reimbursed: -$137
  • Time until payment: 10 months and 29 days

5. Louisiana

  • Median credit card debt: $2,083
  • Cost to be reimbursed: -$158
  • Time until payment: 10 months and 29 days

6. Tennessee

  • Median credit card debt: $2,073
  • Cost to be reimbursed: -$161
  • Time until payment: 11 months and 3 days

7.Kentucky

  • Median credit card debt: $1,857
  • Cost to be reimbursed: -$145
  • Time until payment: 11 months and 5 days

Mississippi has the lowest median credit card debt, which is half of Alaska’s $3,206, the highest median credit card debt. Payment time in the state is twice as fast as in the District of Columbia, which has a median credit card debt of $2,788 and a payment term of 17 months and 3 days.

Many places with low credit card debt also have the low median income for full-time workers, so there does not seem to be a correlation between a high salary and low debt. But there seems to be a correlation between low debt and a low cost of living.

Mississippi has the lowest living wage threshold in America at $51,754, which means the amount your household needs to earn to cover day-to-day expenses and save for retirement. That’s significantly lower than Alaska, the state with the highest credit card debt, which has a living wage threshold of $85,083.

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