Residents in Alaska, Washington, D.C., Colorado and Vermont have the least sustainable credit card debt in the country, according to a new analysis by WalletHub, a personal finance website.
Using TransUnion credit data, the financial advising website calculated the cost and time required to pay off the median card balances of each state and Washington, D.C. Alaska, with a median credit card debt approaching $4,000 and nearly 18 months required to pay it off, fared the worst. Virginia and Hawaii are among the states with the highest median credit card debt overall.
While Americans’ credit card debt varies state-by-state, the financial crisis caused by the coronavirus pandemic will likely make it even worse in 2020. WalletHub, which also used data from the U.S. Census Bureau and Federal Reserve for its report, estimates that net credit card debt will increase by $80 billion this year, after starting at more than $1 trillion nationwide in January.
WalletHub’s findings are not all negative, however. Mississippi, Alabama and Wyoming are among the states with the most sustainable credit card debt, with an average of just over 10 months required to pay it off. Iowa and West Virginia are the two states with the lowest median credit card debt overall.
See WalletHub’s ranking of the states with the most time needed to pay off credit card debt below.