As prices continue to rise and paying for everyday items in the U.S. becomes more difficult., it’s becoming more common for Americans to fall into debt. But how much debt? And which states are seeing the most debt? A recent Consumer Affairs report addresses this topic.
Nationwide Debt Results
The report shows that, in the United States overall, income per capita is $45,256, while the total debt balance per capita is $63,200, making the debt-to-income ratio 139.6%. Consumer Affairs explains that this means that, for every $1 Americans make, they owe $1.40 in debt.
Since 2003, total debt per capita has risen by approximately 10%, with mortgage and car loan debt also rising slightly, but, surprisingly, “credit card debt has actually decreased by 16%.”
States with the Least and Most Debt
There is a significant difference in the debt-to-income ratios between the states with the most and the least debt. Wisconsin scored the best out of all states with the least amount of debt overall. Wisconsin’s debt-to-income ratio was 113.5%. Wisconsin, Vermont, and Nebraska were the top three states with the least debt.
Meanwhile, the state with the most debt was Utah, at 199.4%, yet residents show below-average levels of “serious delinquency,” which the report notes could be due to many young home buyers taking on “good” mortgage debt. Utah, Louisiana, and Nevada were the top three states with the most debt.
Overall, Midwestern and Northeastern states were the states with the least debt, while Southern and Western states were those with the most. The report observes that the states with the least debt are those with annual average incomes of $40,000 or more, while those with the most debt have the lowest incomes, making it much more difficult for residents there to pay down debt.
How CBE Helps Customers Nationwide
CBE can help customers across America address their debt, no matter where they live. Our helpful, understanding live agents guide customers through the payment process, where agents can take payments in full or tailor a payment plan that works for the customer. For a faster experience, customers can also use our smart IVR phone payment system or our online bill pay portal to make a payment when it’s most convenient for them.