How Long It Would Take To Pay Off The Average Credit Card Debt On The Median Income In Each U.S. State
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Many individuals set New Year’s resolutions with the intention of improving their personal financial circumstances. Among the top priorities is often the resolution to eliminate credit card debt. Presently, credit card debt in the United States has surged to a staggering $1 trillion. The confluence of elevated credit limits, exorbitant interest rates, and penalties for late payments collectively create a formidable challenge in regaining control over one’s financial situation.
But let’s consider people in every U.S. state set up a plan to pay 15 percent of their income toward credit card debt. The howmuch.net team compiled analysis from Creditcards.com to figure out how such a strategy would play out in every America state across the nation.
Here is a heatmap illustrating the average total credit card debt categorized by state.
Moreover, the howmuch.net team applied an average household income figure to determine how many months it would take to pay off such a balance with only 15 percent of one’s entire household income.
Several noteworthy insights emerge from these findings. Primarily, a geographical pattern in overall credit card balances becomes apparent. States with deep red hues such as New York ($8,510), Texas ($9,100), and Alaska ($10,685) shoulder the heaviest burdens, whereas the Upper Midwest exhibits comparatively sound financial standing. Wisconsin ($6,737) and Iowa ($6,726) boast the lowest averages nationwide.
For the majority of Americans, a span of at least one year would be necessary to eliminate their credit card debts, with even longer durations projected for southern states. New Mexico, Louisiana, and West Virginia face the lengthiest timelines at 17 months each, while Massachusetts enjoys the shortest duration at just 9 months. Across all 50 states, the mean timeframe amounts to 12.7 months, implying that for many, this resolution would span both 2019 and 2020.
Lastly, an intriguing observation arises from the intricate interplay between debt payoff duration and the total debt burden. States with the highest balances do not invariably necessitate the longest repayment periods. A case in point is Massachusetts, where the average credit card debt tallies at $7,994, yet only demands 9 months for settlement. By contrast, Iowa, with a debt average of $6,726 requires 11 months. This contrast arises from the higher earning potential of Massachusetts residents compared to those in Iowa. Moreover, the relatively elevated cost of living in the Northeast compounds the challenges of attaining financial stability in that region.
How Long It Will Take to Kill the Average Credit Card Debt in Every U.S. State
| State | Total Credit Card Balance ($) | Median Annual Household Income ($) | Months it would take to pay off debt putting 15% of income toward it |
|---|---|---|---|
| ALASKA | 10.685 | 73.181 | 14 |
| VIRGINIA | 9.12 | 71.535 | 12 |
| TEXAS | 9.1 | 59.206 | 14 |
| MARYLAND | 9.009 | 80.776 | 10 |
| CONNECTICUT | 9 | 74.168 | 11 |
| NEW JERSEY | 8.959 | 80.088 | 10 |
| GEORGIA | 8.738 | 56.183 | 15 |
| NEW YORK | 8.51 | 64.894 | 12 |
| COLORADO | 8.463 | 69.117 | 11 |
| HAWAII | 8.423 | 77.765 | 10 |
| FLORIDA | 8.363 | 52.594 | 15 |
| NEW MEXICO | 8.323 | 46.744 | 17 |
| WASHINGTON | 8.318 | 70.979 | 11 |
| ARIZONA | 8.265 | 56.581 | 14 |
| DELAWARE | 8.255 | 62.852 | 12 |
| NEW HAMPSHIRE | 8.252 | 73.381 | 10 |
| NEVADA | 8.25 | 58.003 | 13 |
| WYOMING | 8.199 | 60.434 | 13 |
| OKLAHOMA | 8.197 | 50.051 | 15 |
| ILLINOIS | 8.168 | 62.992 | 12 |
| RHODE ISLAND | 8.162 | 63.87 | 12 |
| CALIFORNIA | 8.144 | 71.805 | 10 |
| SOUTH CAROLINA | 8.124 | 50.57 | 15 |
| LOUISIANA | 8.11 | 46.145 | 17 |
| NORTH CAROLINA | 8.062 | 52.752 | 14 |
| TENNESSEE | 7.996 | 51.34 | 15 |
| MASSACHUSETTS | 7.994 | 77.385 | 9 |
| ALABAMA | 7.967 | 48.123 | 16 |
| KANSAS | 7.964 | 56.422 | 13 |
| PENNSYLVANIA | 7.888 | 59.195 | 12 |
| ARKANSAS | 7.727 | 45.869 | 16 |
| UTAH | 7.727 | 68.358 | 10 |
| MISSOURI | 7.706 | 53.578 | 13 |
| OHIO | 7.654 | 54.021 | 13 |
| OREGON | 7.582 | 60.212 | 12 |
| WEST VIRGINIA | 7.563 | 43.469 | 17 |
| IDAHO | 7.518 | 52.225 | 13 |
| NEBRASKA | 7.515 | 59.97 | 12 |
| MAINE | 7.466 | 56.277 | 12 |
| VERMONT | 7.466 | 57.513 | 12 |
| MONTANA | 7.444 | 53.386 | 13 |
| MISSISSIPPI | 7.433 | 43.529 | 16 |
| KENTUCKY | 7.428 | 48.375 | 14 |
| INDIANA | 7.393 | 54.181 | 13 |
| MICHIGAN | 7.382 | 54.909 | 13 |
| MINNESOTA | 7.351 | 68.388 | 10 |
| SOUTH DAKOTA | 7.199 | 56.521 | 12 |
| NORTH DAKOTA | 7.068 | 61.843 | 11 |
| WISCONSIN | 6.737 | 59.305 | 10 |
| IOWA | 6.726 | 58.57 | 11 |
