Alaska Tops List of States with Highest Credit Card Debt

Alaska tops the list of US states with the highest credit card debt burden, according to a report recently published by 24/7 Wall St.

The financial news and opinion website said in its report that an average resident in this state owes $8,515, more than $2,000 of the $6,354 bank-issued credit card debt of a typical American. Next on the list is Connecticut with $7,258, followed by Virginia ($7,161), New Jersey ($7,151), Maryland ($7,043), Hawaii ($6,981), Texas ($6,902), Colorado ($6,718), Georgia ($6,675) and New York ($6,671). 

Ted Rossman, an industry analyst at creditcards.com, a research group, where the 24/7 Wall St sourced its figures said that states with higher debt tend to be home to higher-income residents. These states also report more credit cards per person and a higher cost of living which stimulates spending.

In Alaska’s case, its cost of living is 5.4%, which is more than the typical US state, while its average credit score is 668. Likewise, the report said a typical Alaskan has 2.9 credit cards.

Americans’ credit card debt ballooned to a record $1.04 trillion in 2018, which jumped from less than $854 billion in 2013. Rossman said that less than half (40%) of Americans have sufficient income to pay off their balance in full every month. However, the remaining 60% keeping a high credit card balance can lead to interest payments amounting to hundreds of dollars every year and a likely reduction in credit score.

Need to Track Expenses

Meanwhile, an expert said that the biggest mistake cardholders make in managing their expenses is their failure to track their spending with credit cards. In her article on U.S. News, Beverly Harzog said this could lead to overspending, which then results in paying compound interest on a credit card balance.

According to Harzog, the recent WalletHub poll showing 86 million Americans fear they will max out their cards means many in the US population are not confident in managing their budgets. She recommended using spending tracker tools such as Mint, YNAB, and Albert for this purpose.

RELATED ARTICLES

Program for an Electric Vehicle Tax Credit for Union-Built Vehicles
Credit

Program for an Electric Vehicle Tax Credit for Union-Built Vehicles Faces Obstacle

House Democrats' plan to provide customers with an additional option to encourage union-built vehicles has sparked controversy and discussion among legislators, manufacturers, and other parties. The House Ways and Means Committee last week cleared the tax breaks for consideration in the Democrats' $3.5 trillion budget bill measure, despite vocal objections...
Williams-Sonoma Key Rewards Credit Card Program
Credit

Williams-Sonoma and Capital One Introduce The Key Rewards Credit Card Program

Williams-Sonoma, Inc., a leading American home retail company, revealed that it has partnered with bank holding company Capital One to introduce the Key Rewards Credit Card Program. The company’s top-level Key Rewards program is upgraded with new credit cards. Cardholders can accumulate rewards when they shop at Williams Sonoma, Inc....
Federal Bank Credit Cards In Partnership With Visa
Credit

Federal Bank Introduces Credit Cards In Partnership With Visa

Federal Bank has announced the introduction of its credit card in India. To offer credit cards to its current clients, the private banking company has collaborated with Visa, the worldwide financial services corporation. As per Shyam Srinivasan, Managing Director and CEO of Federal Bank, the issuance of the card would...
Wells Fargo Personal Credit Lines Closure Plan
Credit

Wells Fargo Drops Personal Credit Lines Closure Plan

Wells Fargo & Co. sparked a public outcry when it announced plans to phase down personal lines of credit in July, but the firm will reverse direction on August 18, 2021. Customers who have been using their personal credit lines have just received notice from the San Francisco-based lender...
Universal Credit Human Rights Legislation
Credit

The Reduction in Universal Credit Violates Human Rights Legislation

According to the UN's poverty expert, reducing universal credit by £20 per week is an "unjustifiable" decision that violates human rights law and would certainly lead to an expansion of poverty. The retreat of the £1,000-a-year uplift from next month, according to Olivier De Schutter, the UN-appointed chair of the...
Credit Cards Dark Web Data Leak
Credit

Hackers Leak 1M Credit Cards on the Dark Web

One million stolen credit cards have been posted by hackers on the Dark Web through AllWorld.Cards. The act was reportedly done by cybercriminals in an attempt to promote their activities and operations, as well as make their organization known. The leaked credit card information was discovered by cybersecurity researchers from...
Carter’s Child Tax Credit May Boost Children’s Apparel Business
Credit

Carter’s Says Child Tax Credit May Boost Children’s Apparel Business

Carter’s, an American retailer for children’s apparel, says that with the new child tax credit rolling out across the United States, and as the usual shopping for back-to-school resumes, the company is confident about its opportunities. To meet the consumers’ demand, the company is being compelled to pay extra to...
Younited Credit Yields Million in Fund
Credit

Younited Credit Yields $170 Million in Fund Round

Younited Credit, a France-based company, has secured $170 million in fund round. Consumers in Europe can choose from a variety of credit options offered by the startup. It also employs a multi-distribution method. The funding round, which is led by Goldman Sachs, has participants including existing investors such as Bpifrance,...
Sterling Construction Modifies Credit Agreement
Credit

Sterling Construction Modifies Credit Agreement with BMO Harris Bank

Sterling Construction Company, Inc. has modified its current credit agreement with BMO Harris Bank, its lending group. It has revealed that numerous terms of the agreement are revised. Two of the terms include lowering the existing credit agreement borrowing interest rate by 2% points and reducing the credit agreement's future...