The 25 U.S. states with the highest credit card debt


In this article, we'll take a look at the 25 states in the United States with the highest credit card debt.If you want to skip our overview of U.S. consumer spending and recent economic trends that should worry consumers, analysts, and policymakers, you can check out The 10 states with the highest credit card debt in the United States.

Since the United States is the largest economy in the world, consumer spending drives the U.S. economy. Private enterprise and capitalist ideals permeate the American way of life, and the pursuit of wealth is often less looked upon than in several other countries. Of course, this means that consumer well-being is critical to the broader U.S. economic well-being, and every year companies and politicians launch countless initiatives and programs to ensure that American consumers can spend as much as they want.

However, the size of the U.S. economy, coupled with a high standard of living, means that it may be difficult for most people to afford expensive purchases with their monthly income. That's where credit cards come in, serving as a convenient medium that allows people to buy now and pay later – with interest added. Credit cards also protect consumers from fraud, and they are often highly sought after because they allow borrowers to build credit profiles to convince banks to lend them money to buy expensive items like homes and cars.

These security and convenience advantages that credit cards provide mean that there are more credit cards in the world than there are people. In fact, Insider Monkey surveyed the 20 countries with the most credit card debt in the world and found that as of 2020, the number of credit cards worldwide was as high as 6.8 billion. This is despite the fact that most developing and underdeveloped countries, such as African and Asian countries, are still relatively unbanked compared to Western countries.

The close link between consumer spending in developed countries such as the United States, Canada and Germany also means that governments in these countries are able to exercise greater economic control to help manage macroeconomic indicators such as inflation and GDP growth. In fact, if you've paid any brief attention to the financial media over the past few years, you'll know that the hottest topic among analysts and members of the media is interest rates. The Fed has raised interest rates to levels last seen before the Great Recession in 2008, allowing it to rein in consumer spending as credit becomes more expensive.

These high interest rates have also affected consumers. To understand how serious this is for consumers and credit card users, let’s look at data from the Federal Reserve Bank of St. Louis. The agency said that the current interest rate on credit card plans for all accounts at commercial banks is as high as 21.59%. That's the highest level since the data was first compiled in 1994, underscoring the intense pressure consumers are currently facing even as analysts and politicians cheer the U.S. economy's strong growth in 2023 and the first quarter of 2024.

As some of you may know, higher interest rates mean that while borrowers may struggle with high credit costs, lenders are happy to hand out as much money as possible. But before we understand what credit card issuers are seeing in the market as the U.S. economy continues to grow amid high interest rates, the U.S. industry is seeing other historic developments.

These include Capital One Financial Corp. (NYSE: COF), one of the largest credit card issuers in the United States, seeking to acquire digital bank Discover Financial Services (NYSE: DFS) in a $35.3 billion deal. If the deal is approved by regulators, Capital One would become one of the largest banks in the United States, while Discover would expand its reach and compete with Mastercard Inc., two of the world's largest credit card companies. (NYSE: MA) and Visa Inc. (NYSE: V).

So, how are credit card companies doing in this era of record-high interest rates? Well, here's what American Express Company (NYSE: AXP ) management had to say during its 2024 fourth-quarter earnings call:

Since 2021, we have achieved record annual revenue, growing the size of our business by more than 40% in just two years, from annual revenue of $42 billion to $61 billion. During that period, annual card spending increased 37% to a record $1.5 trillion, adjusted for currency. In the past two years, we have added approximately 25 million self-operated card accounts, and more than 70% of these new accounts have entered the franchise business of fee-based products. With the growth and new accounts we've seen over the past few years, we now have a total of over 140 million cards running on our global network. Our focus on continually innovating value propositions to meet customer needs is driving increased brand relevance across generations, including Millennials and Gen Z consumers.

So, in this era of high interest rates, which states in the U.S. have the highest credit card debt? Take a look below to find out.

The 25 U.S. states with the highest credit card debtThe 25 U.S. states with the highest credit card debt

The 25 U.S. states with the highest credit card debt

Our methodology

For the list of U.S. states with the highest credit card debt, we used state-level household debt statistics from the Federal Reserve Bank of New York's Microeconomic Data Center for the fourth quarter of 2003-2023 and selected the 25 states with the highest credit card debt. Credit card debt balance.

The 25 U.S. states with the highest credit card debt

25. Pennsylvania

Credit card debt balance per capita: $3,720

Pennsylvania occupies a central place in American history and politics. Its $974 billion GDP not only makes it one of the most prosperous states in the United States, but it also beats many countries in economic output.

24. North Carolina

Credit card debt balance per capita: $3,720

North Carolina is a state in the southeastern United States and one of the ten most populous states in the United States. It was one of the first states to join the Union, and the state also benefited from a strong industrial and agricultural base.

23. Minnesota

Credit card debt balance per capita: $3,740

Minnesota, located on the border between the United States and Canada, is a state known throughout the United States for its forests and rivers. The area is known for its agricultural and mining economies.

22. Utah

Credit card debt balance per capita: $3,850

Utah is a state in the western United States and one of the last states to join the Union. While it's also one of the more sparsely populated areas in the United States, the state ranks high in median household income.

21. Illinois

Credit card debt balance per capita: $3,910

Illinois is a state in the Midwest and ranks among the ten most populous states in the United States. It has the highest oil refining rate in the United States and strong agricultural and manufacturing industries.

20. Arizona

Credit card debt balance per capita: $4,040

Arizona is a state in the southwestern United States, ranking sixth in area. Today it is in the national spotlight as local and foreign companies build multi-billion-dollar chip factories with help from the U.S. government.

19. Rhode Island

Credit card debt balance per capita: $4,070

Rhode Island is one of the smallest states in the United States. However, it is the second most populous state in the United States.

18.Delaware

Credit card debt balance per capita: $4,120

Delaware is another small state in the United States, second only to Rhode Island in area. It has a large number of companies from various industries, from banking to poultry.

17. New Hampshire

Credit card debt balance per capita: $4,140

New Hampshire has one of the highest median incomes in the United States. However, its size also limits its economic output, placing it at a lower level than other states.

16. Georgia

Credit card debt balance per capita: $4,180

Georgia is a state in the southeastern United States and one of the first states to join the Union. It is also one of the most populous cities and has a vibrant corporate sector that includes big names like Coca-Cola.

15. Texas

Credit card debt balance per capita: $4,200

Texas is the second largest state in the United States. Energy and aerospace are among the largest industries in its economy, thanks to companies like SpaceX.

14. Washington

Credit card debt balance per capita: $4,240

Washington State is one of the most prosperous states in the United States and has one of the highest incomes in the country. Boeing, Amazon, Microsoft, etc. are among the largest companies in the region.

13. Massachusetts

Credit card debt balance per capita: $4,300

Massachusetts is one of the most populous and prosperous states in the United States. It is known for its vibrant healthcare and education industries.

12. Virginia

Credit card debt balance per capita: $4,390

Virginia is a state in the southeastern United States known for the Pentagon and related companies belonging to the defense and government consulting/contracting industries.

11.California

Credit card debt balance per capita: $4,450

Thanks to its technology industry, California is one of the most economically wealthy states in the United States. This has also made the state's price level the highest in the United States, and has also led to an exodus of high-income earners from areas such as San Francisco.

Click to continue reading and view The 10 states with the highest credit card debt in the United States.

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Disclosure. not any. The 25 U.S. states with the highest credit card debt Originally published on Insider Monkey.



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