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Examining the State of the U.S. Economy, Nationwide Debt

Upgraded Points recently released a comprehensive study detailing how U.S. debt has changed over time and to what extent debt of different types are influenced by region, including which states are impacted the most. From credit card debt and student loans, to mortgages and medical bills, the study ultimately reveals 10 years of trends for states still in the red as well as those that are seeing the most debt paid off year by year. Upgraded Points is a trusted travel company that regularly creates and provides seasonal and special interest studies for both its customers and general travelers.

Study Highlights: U.S. credit card debt and credit scores

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 $4,070, but Florida residents have the hardest time paying off credit card debt, with an average card debt-to-income ratio of 6.2%.

Other state credit card and credit score breakdowns include:

  • CaliforniaAverage credit card debt of $3,330 per citizen, 5.05% credit card debt-to-income ratio, and average credit score of 709.
  • New YorkAverage credit card debt of $3,520 per citizen, 5.54% credit card debt-to-income ratio, and average credit score of 712.
  • OhioAverage credit card debt of $2,620 per citizen, 4.77% credit card debt-to-income ratio, and average credit score of 695.
  • TexasAverage credit card debt of $3,190 per citizen, 5.75% credit card debt-to-income ratio, and average credit score of 674.

Study highlights: housing mortgages, medical debt, and student loan debt

  • Student Loan Debt—Student loan debt has increased over 50% nationally since 2011, but Nevada has seen a 94% increase from this debt source (North Carolina and Georgia ranked No. 2 and 3). Mississippi has the highest student debt-to-income ratio (43%) and Pennsylvania has the highest percentage of residents in student loan debt (19%). In Alaska, education debt rose just 17%.
  • Housing Debt—Mortgage debt rose 14% from 2011 to 2021, but North Dakota has seen the most significant housing debt increase (63%). Hawaii has the highest median home value and D.C. has the highest mortgage debt at $75,280 per homeowner. Five states are in the top 10 for both home value and mortgage debt per capita: CaliforniaColoradoHawaiiWashington, and Utah.
  • Medical Debt— Southern states tend to have higher populations in medical debt and the highest ratios 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 U.S. is $678.72 — Wyoming has the highest ($1,515) and Hawaii the lowest ($339). States with higher uninsured populations tend to have greater outstanding medical debt: Less than 3% of Massachusetts' residents are without insurance and the state ranks third for the least medical debt in collection. 18% of Texas residents are without medical insurance and the state ranks fifth for most medical debt in collections.

Overall U.S. citizen debt continues to rise dramatically

Total household debt in the U.S. has increased by 16% over the past decade. Since 2011, U.S. mortgage debt has increased by 14%, student loan debt increased by 56%, auto debt increased by 71%, and credit card debt increased by 4%. Seven states in particular have a mortgage debt increase of over 30%, including AlaskaColoradoIdahoMontanaNorth Dakota, and Utah. Four states have more than 20% of residents with medical debt in collections: North CarolinaOklahomaSouth Carolina, and West Virginia. Student loan debt has increased by over 50% for 27 states, including AlabamaGeorgiaNorth Carolina, and South Carolina. And in Nevada, student loan debt has almost doubled by an astounding 94%.

To see the complete results of the debt study along with more data and methodology, click here.

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport magazines with more than eight years of writing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News and the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, Lester is an avid jazz lover and likes to read. She can be reached at [email protected].
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