Upgraded Points recently published a comprehensive study detailing how US debt has changed over time and how debt of different types is affected by the region, including which states are hardest hit. From credit card debt and student loans to mortgages and medical bills, the study ultimately shows 10-year trends for states that are still in the red as well as those that have the most debt repayments year over year. Upgraded Points is a trusted travel company that regularly produces and provides seasonal and special interest studies for both its customers and general travelers.
Study Highlights: US Credit Card Debt and Creditworthiness
There is a correlation between income and credit card debt, with wealthier states tending to have both higher credit card debt and credit scores, while less wealthy states have higher credit card debt-to-income ratios. Alaska has the most credit card debt per capita, at $4,070but Florida Residents have the hardest time paying off credit card debt, with an average card debt-to-income ratio of 6.2%.
Other government credit card and credit score breakdowns include:
- California: Average credit card debt of $3,330 per citizen, 5.05% credit card debt-to-income ratio, and average credit score of 709.
- new York: Average credit card debt of $3,520 per citizen, 5.54% credit card debt-to-income ratio, and average credit score of 712.
- Ohio: Average credit card debt of $2,620 per citizen, 4.77% credit card debt-to-income ratio, and average credit score of 695.
- Texas: Average credit card debt of $3,190 per citizen, 5.75% credit card debt-to-income ratio, and average credit score of 674.
Study Highlights: Residential Mortgage, Medical Debt, and Student Loan Debt
- Student Loan Debt – Student loan debt has increased by over 50% nationwide since 2011, but Nevada has experienced a 94% increase from this source of debt (North Carolina and Georgia 2nd and 3rd place). Mississippi has the highest student debt to income ratio (43%) and Pennsylvania has the highest percentage of residents with student loan debt (19%). in the AlaskaEducation debt increased by just 17%.
- Home Debt – Mortgage debt increased 14% from 2011 to 2021, but North Dakota has seen the most significant increase in housing debt (63%). Hawaii has the highest median home value and DC has the highest mortgage debt $75,280 per homeowner. Five states are in the top 10 for both home value and mortgage debt per capita: California, Colorado, Hawaii, Washingtonand Utah.
- Medical Debt – Southern states tend to have a higher medical debt population and the highest ratio of medical debt to monthly income: West Virginia has the highest percentage (24%) with medical debt in collections. The average median medical debt in collections in the US is $678.72 — Wyoming has the highest ($1,515) and Hawaii the lowest ($339). States with higher uninsured populations tend to have larger outstanding medical debts: Less than 3% of Massachusetts’ Residents are uninsured and the state ranks third for lowest medical debt on the census. 18% of Texas Residents have no health insurance and the state ranks fifth for most medical debt in collections.
The overall debt of US citizens continues to increase dramatically
Total US household debt has increased by 16% over the past decade. Since 2011, U.S. mortgage debt is up 14%, student loan debt is up 56%, car debt is up 71%, and credit card debt is up 4%. In particular, seven states have mortgage debt increases of over 30%, including Alaska, Colorado, Idaho, Montana, North Dakotaand Utah. Four states have more than 20% of residents with medical debt in collections: North Carolina, Oklahoma, South Carolinaand West Virginia. Student loan debt is up over 50% for 27 states, including Alabama, Georgia, North Carolinaand South Carolina. And in NevadaStudent loan debt has nearly doubled by a staggering 94%.
To view the full debt study results along with additional data and methodology, click here.
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