Welcome to today's episode! We're diving into America's growing credit card debt crisis, with a special focus on the states where people owe the most. By the end of 2024, U.S. households had racked up a staggering $1.3 trillion in credit card debt, coming close to the previous all-time high from 2007. According to WalletHub, the average household carries about $11,253 in credit card balances. But in some states, it's even worse. As WalletHub editor John Kiernan put it, “Many people’s debt is in danger of becoming unsustainable, which means their financial future is in jeopardy.” So, let's take a closer look at the 10 states with the highest average credit card debt.

Key Points:

• Total U.S. credit card debt: $1.3 trillion (as of late 2024), nearing the 2007 record.
• Average household credit card debt: $11,253 across the U.S.
• John Kiernan’s warning: Many Americans’ debt levels are at risk of becoming “unsustainable.”
• Top 10 states with the highest credit card debt:
  1. Alaska – Historically ranks high due to high costs of living.
  2. Connecticut – One of the wealthiest states, but high living costs drive debt.
  3. Virginia – Higher-than-average incomes but also more spending.
  4. Maryland – Strong economy but high household debt levels.
  5. New Jersey – High cost of living puts pressure on finances.
  6. Hawaii – Expensive housing and everyday costs add up.
  7. Colorado – Higher wages but also higher debt burdens.
  8. Texas – Larger population with rising consumer spending.
  9. Georgia – Struggles with rising inflation and consumer debt.

10. Florida – Retiree-heavy population with healthcare and living expenses.

What This Means for You:

If you live in one of these states, high consumer debt could signal financial instability for individuals. Experts suggest focusing on repayment plans, reducing discretionary spending, and considering balance transfer credit cards to lower interest rates.

Want to dig deeper into your state’s financial health? Check out WalletHub’s full report on their website for more details. And remember, managing your credit responsibly is key to long-term financial stability.

That’s it for today’s episode—thanks for tuning in! Until next time, spend wisely! 🚀
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