Regional Friday: 10 States With the Lowest Credit Card Debt

Back in April, the total amount of credit card debt that Americans owed topped $1 trillion, according to the Federal Reserve. It’s an almost inconceivable number, even when you consider the fact that it’s spread out across a total population of more than 320 million people. That being said, the average U.S. adult has a credit card holding $6,304.26 in debt.

To make matters even more complicated, the total debt distribution across the country is not even. Average credit card debt per person can vary drastically from state to state. The per person difference between the most indebted state and the least indebted state is nearly $3,000. For an individual dealing with this issue, that’s a hefty chunk of change.

So, which states hold the least amount per person? We’ll count down the top 10 below.

(Note: we’ll also list the average debt per capita for each state for perspective. As you’ll see, it doesn’t always correlate with credit card debts.)

10. Indiana

Average credit card debt in Indiana: $4,964.28

Amount less than U.S. average: $1,339.98

Average debt per capita: $3,257.39

9. Tennessee

Average credit card debt in Tennessee: $4,957.47

Amount less than U.S. average: $1,346.79

Average debt per capita: $953.21

8. Oklahoma

Average credit card debt in Oklahoma: $4,804.14

Amount less than U.S. average: $1,500.12

Average debt per capita: $2,411.79

7. Louisiana

Average credit card debt in Louisiana: $4,778.84

Amount less than U.S. average: $1,525.42

Average debt per capita: $4,190.29

6. Alabama

Average credit card debt in Alabama: $4,632.51

Amount less than U.S. average: $1,671.75

Average debt per capita: $1,863.64

5. Iowa

Average credit card debt in Iowa: $4,554.52

Amount less than U.S. average: $1,749.74

Average debt per capita: $2,082.32

4. Kentucky

Average credit card debt in Kentucky: $4,444.87

Amount less than U.S. average: $1,859.39

Average debt per capita: $3,417.55

3. West Virginia

Average credit card debt in West Virginia: $4,313.15

Amount less than U.S. average: $1,991.11

Average debt per capita: $4,310.10

2. Arkansas

Average credit card debt in Arkansas: $4,249.78

Amount less than U.S. average: $2,054.48

Average debt per capita: $1,554.26

1. Mississippi

Average credit card debt in Mississippi: $3,848.83

Amount less than U.S. average: $2,455.43

Average debt per capita: $2,394.13

Now that we discussed which states have the least amount of credit card debt on average, here’s the bigger question: What does it all mean?

The main takeaway is somewhat inconclusive. Most economists think of spending, even credit card spending, as a positive thing. The more people spend, the more the economy is stimulated and the faster it should grow, which theoretically should lead to more prosperity for all.

Of course, that all assumes that people keep up with their credit cards and pay off their balances, which isn’t always the case. These “revolvers” make up 42.1% of all accounts. To make matters worse, the average household with “revolving” debt (carried over month-to-month) carries a balance of $6,885, over $500 more than the average.

In the end, what you owe has less to do with what state you live in and more to do with your personal situation. Keep up with your payments, eliminate your balance as soon as you can, and spend responsibly. The rest should take care of itself.