There’s some good news in the world of credit cards. Americans cut their credit card debt by 11% last year, as compared to 2010, according to a new report by Credit Karma.
While some analysts say this decrease is a positive sign, others feel it is the result of “weak consumer confidence, resulting in slower spending, tighter lending on the part of banks, and lower credit limits.”
Regardless of the reason, there appears to be an interesting correlation between credit card debt and the financial health of the state where you live. For instance, states whose residents owe the most credit card debt have:
- Among the highest median household incomes;
- Above-average credit scores; and
- High costs of living, relative to other states.
It makes sense that if you’re paying more for goods and have more discretionary income, that you are likely to spend more. On the other hand, states with the smallest amount of credit card debt have:
- Among the lowest median incomes;
- The lowest credit scores; and
- Lower costs of living.
The end result is that these 10 states are the highest and the lowest when it comes to credit card debt:
The Lowest Credit Card Debt
The Highest Credit Card Debt
- New Hampshire
- New Jersey
Regardless of where you live and whether or not your state is on the top or the bottom of the list, if you are in a difficult financial situation, have a large amount of unsecured debt, including credit card debt, and need help turning it around, debt settlement may be right for you.