California ranks top 10 in this national study — for debt. Here’s how much households owe
Consumers in the U.S. have racked up more than $1.2 trillion in credit card debt, but some states — such as California — have larger increases and per-household debt than others.
A WalletHub study comparing the states, based on data from credit bureau TransUnion and the Federal Reserve, to see which had the largest and smallest increases in credit card debt.
The rise in debt comes as inflation is on the rise and earnings are down.
The Consumer Price Index rose 3.7% from August last year, according to the latest data from the Bureau of Labor Statistics released Wednesday. That’s up from 3.2% in July, but still down from the June 2022 high of 9.1%. And real average hourly earnings declined 0.5% for the month.
What did the study find?
In 2022, Americans added $116 billion in credit card debt. In the second quarter of this year, consumers added another $43 billion — the second-largest increase in that quarter ever and 16% more than the same period last year.
The average household carried $10,170 on credit cards at the end of the second quarter, $2,242 below the 2007 record.
The study found California topped the list with a total credit card debt increase of more than $5.4 billion. Households in the state carried an average of $9,796 in credit card debt, with an increase of $409. Californians have $152.7 billion in credit card debt. California is also the most populous state, according to census data, with a population of more than 39 million.
Texas took second place, with households racking up an additional $385 in debt and holding $9,216. Texans added more than $3.9 billion in credit card debt to the total of $111.3 billion. Texas is also the second most populous state, with more than 30 million people.
Wyoming rounded out the list with $7,667 per household and an increase of $321. The state added almost $74 million and has more than $2 billion in credit card debt. Wyoming has a population of just over 581,000.
Hawaii and Alaska hold more debt per household than California at $10,637 and $10,142, respectively, and had increases of $445 and $424 per household.
Largest credit card debt per household
Hawaii — $10,637
Alaska — $10,142
California — $9,796
New Jersey — $9,468
Maryland — $9,255
Texas — $9,216
Connecticut — $9,176
Florida — $9,053
Georgia — $8,976
New York — $8,964
Smallest credit card debt per household
Ohio — $6,862
South Dakota — $6,857
North Dakota — $6,848
West Virginia — $6,836
Maine — $6,827
Kentucky — $6,809
Nebraska — $6,795
Indiana — $6,779
Iowa — $6,231
Wisconsin — $6,208
What is The Sum?
The Sum is your friendly guide to personal finance and economic news.
We’re a team of McClatchy journalists cutting through the financial jargon so you know how these issues impact your life. We verify information from diverse sources and keep the facts front-and-center, making finance and economic news add up for you.
Ready to take the first step to getting your finances under control? You can sign up for our five-week budgeting newsletter at thesum.news.
