The Number One: This Is The Worst State To Have Credit Card Debt

When it comes to credit card debt, Alaskans are in a tough state.

Residents of The Last Frontier owe the highest median balances in the entire country, and also take the longest to pay it off, according to a new WalletHub report on the States with the Highest and Lowest Credit-Card Debts. The personal finance site’s analysts tapped data from TransUnion, the Federal Reserve, the U.S. Census Bureau and WalletHub’s own credit card payoff calculator to determine the median balance per person, the median income per state, the cost of interest until payoff in each place (at an average 16.91% interest rate), as well as how long it would take someone in each state to pay it all.

And Alaska topped the list of 50 states with $4,144 in median credit card debt. The District of Columbia had the second-highest with $3,242, followed by Virginia ($3,081), Colorado ($2,985) and Washington ($2,880).

Alaska also topped the list of states with the least sustainable credit-card debt, meaning it would have the longest payoff timeline — clocking in at 19 months and 11 days, with $575 in interest, to bring that balance back to zero. The other states with the lengthiest payoff times included D.C. (17 months and 12 days), Vermont (15 months and 14 days), as well as Washington and Colorado (both requiring 15 months and three days.)

Related: This guy racked up $16,000 in credit-card debt — 7 ways he found financial freedom

On the flip side, Iowans are shouldering the lowest median credit card debt at $2,091, according to this data, followed by Wisconsin ($2,120), Vermont ($2,227), Kentucky ($2,248) and Mississippi ($2,258.)

And those who want to pay off their plastic the quickest should considering moving to Indiana, where the median balance of $2,313 would take just under 10 months (nine months and 29 days) to pay off. Mississippi, Arkansas, Hawaii and South Dakota residents can also knock down their credit card debt in under a year.

Americans are collectively shouldering more than $1 trillion in credit card debt, and it’s taking them longer and longer to pay it off. A recent report from CreditCards.com found that more than one in three cardholders — some 39 million Americans — have been in debt for at least two years. And a growing number of Americans have more credit-card debt than savings.

Looking for steps to dig yourself out of debt? This man who was $16,000 in credit card debt shared seven lessons he learned while paying that off. Or get tips on transferring it to a credit card with a lower interest rate here.

RECENT NEWS

The Penny Drops: Understanding The Complex World Of Small Stock Machinations

Micro-cap stocks, often overlooked by mainstream investors, have recently garnered significant attention due to rising c... Read more

Current Economic Indicators And Consumer Behavior

Consumer spending is a crucial driver of economic growth, accounting for a significant portion of the US GDP. Recently, ... Read more

Skepticism Surrounds Trump's Dollar Devaluation Proposal

Investors and analysts remain skeptical of former President Trump's dollar devaluation plan, citing tax cuts and tariffs... Read more

Financial Markets In Flux After Biden's Exit From Presidential Race

Re-evaluation of ‘Trump trades’ leads to market volatility and strategic shifts.The unexpected withdrawal of Joe Bid... Read more

British Pound Poised For Continued Gains As Wall Street Banks Increase Bets

The British pound is poised for continued gains, with Wall Street banks increasing their bets on sterling's strength. Th... Read more

China's PBoC Cuts Short-Term Rates To Stimulate Economy

In a move to support economic growth, the People's Bank of China (PBoC) has cut its main short-term policy rate for the ... Read more