In the United States, personal debt can be an overwhelming part of daily life. Whether it’s the result of buying a home, paying for college, or managing day-to-day expenses, millions of Americans find themselves buried under debt. But where are the highest burdens?
A recent study by Best Financial Planners took a close look at how debt is spread across the U.S., providing a breakdown of average debt for personal loans, car loans, credit card balances, mortgages, and student loans.
States with the most debt
Hawaii leads the country in carrying the highest overall debt, with residents shouldering an average of $108,605 per borrower. This substantial figure is largely driven by mortgage debt, which averages $384,492, the highest in the study. While car and credit card debt in Hawaii are lower than in many other states, student loan debt is still a significant concern, averaging $38,158. Despite the lower levels of car debt ($4,210) and credit card debt ($7,560) compared to some other states, the heavy mortgage debt makes Hawaii the state with the heaviest financial burden.
California is in second place with an overall debt of $104,934. As in Hawaii, mortgages are the primary contributor to the state's debt load, with the average mortgage debt standing at $369,059. Californians also hold the highest car loan balances in the top 10, averaging $5,430. On top of that, credit card debt ($7,080) and student loans ($38,168) remain significant, though they are not as high as in some other states.
In third place, Washington’s residents face an average overall debt of $89,098. The state’s mortgage debt averages $307,634, ranking third highest in the study. Car debt in Washington averages $5,020, which is outside the top 30 for highest car debt, while credit card debt stands at $6,975, ranking 14th in the study. Student loans are also a substantial concern here, averaging $36,762.
Colorado ranks fourth with an overall debt of $87,358. Mortgages account for a substantial part of this burden, with an average mortgage of $299,223, the fifth highest in the study. Car debt is also relatively high in Colorado at $5,550, placing the state in the 26th position for this category. Credit card debt here averages $7,267, ranking 9th in the study, while student loans stand at $37,392, placing Colorado in 15th place for student debt.
Massachusetts rounds out the top five with an average debt of $86,729. The state’s mortgage debt of $300,254 ranks fourth highest in the study. While car debt ($4,280) is on the lower end, Massachusetts' credit card debt averages $6,853, placing it in 15th place, and student loan debt is also notable, averaging $35,529.
New York ranks sixth with an overall average debt of $83,647. The state’s mortgage debt averages $284,458, which is substantial but not as high as those seen in states like Hawaii or California. However, New Yorkers carry the highest student loan debt in the top 10, with an average of $38,690. Car loan and credit card balances are relatively moderate compared to other high-debt states, with averages of $4,430 and $7,010, respectively. Despite these more manageable debt categories, the steep student loan debt keeps New York firmly in the top 10 for the heaviest debt loads.
Utah ranks seventh with an overall debt load of $81,313. One notable characteristic of Utah’s debt is its particularly high car loan debt, which averages $6,090, the highest among the top 10 states. This is likely due to the state’s growing population and its residents' strong affinity for owning cars. Mortgages in Utah are relatively lower than in some other states in the top 10, averaging $278,885. Student loan debt is the lowest in the group at $33,746, reflecting Utah’s younger demographic and more affordable in-state college options.
New Jersey comes in eighth with an overall debt of $80,233. What stands out here is the state’s particularly high credit card debt, which averages $7,605, the second highest in the study. While mortgage debt in New Jersey is relatively lower than in states like California or Hawaii, averaging $271,077, car debt is moderate at $5,050. Student loan debt in New Jersey also remains significant, with an average of $37,201, but it’s the high credit card debt that really pushes the state into the top 10.
Maryland follows closely behind New Jersey in ninth place with an average debt of $79,720. One key feature of Maryland’s debt burden is the state’s sky-high student loan debt, which averages $43,692, the highest among the top 10 states. While mortgage debt in Maryland is lower than in New Jersey, averaging $261,675, car and credit card debt remain relatively high, with averages of $6,020 and $7,492, respectively.
Virginia rounds out the top 10 with an overall average debt of $77,535. Mortgages in Virginia average $257,233, which is just outside the top 10 for highest mortgage debt. While car debt is somewhat moderate at $5,570, credit card debt is fairly high, averaging $7,200, ranking 11th in the study. Student loan debt is another significant factor, with Virginians carrying an average of $40,137, the third highest in the study.
States with the least debt
West Virginia stands out as the state with the least overall debt, with an average of just $33,964 per borrower. The state's mortgage debt is remarkably low at $92,000, the lowest in the study. Car debt averages $6,070, which is in the middle of the pack, and credit card debt is also relatively low at $5,427. The only category where West Virginia sees some debt pressure is student loans, averaging $32,358. Despite this, West Virginia's residents manage to keep their total debt load considerably lower than most other states.
Iowa follows with an overall debt of $46,723, which is the highest among the top five states with the least debt. However, the state’s mortgage debt is notably low at $145,508, ranking as the second lowest in the study. Car debt averages $5,130, which is in the bottom third of the rankings, and credit card debt is the lowest in the study at $5,329. Student loans in Iowa average $30,925, the second lowest in the study, helping keep the state’s overall debt burden modest.
Kentucky comes in third with an overall debt of $48,916. The state’s mortgage debt of $151,935 is relatively low compared to many other states, and car debt averages $4,860, just outside the bottom 10. Kentucky’s credit card debt averages $5,399, and student loan debt is a bit higher, averaging $33,470. While Kentucky's residents do carry debt, it remains more manageable than in states at the other end of the spectrum.
Ohio ranks fourth with an overall debt of $48,919. Mortgage debt averages $149,442, the third lowest in the study, and car debt stands at $5,330, which places the state just outside the top 30 for car debt. Credit card debt in Ohio averages $5,871, which is among the lowest in the study, while student loans average $35,033, which is on the higher side for the least debt-heavy states. Despite some areas of concern, Ohio keeps its overall debt burden relatively low.
Indiana is 5th with an overall debt of $49,065. Mortgage debt in the state averages $152,147, which is the seventh lowest in the study. Car debt is also fairly low at $5,250, while credit card debt averages $5,621, ranking sixth lowest. Student loan debt in Indiana is slightly higher, averaging $33,243, but overall, the state manages to keep its total debt burden quite light.
The full list of states where Americans have the most debt:
Methodology
The study identifies the states where Americans carry the most and least debt by evaluating four types of debt across all 50 states: average auto debt, average credit card debt, average mortgage debt, and average student loan debt.
The ranking was determined by comparing the average overall debt per borrower across states, from the highest to the lowest.
Sources
Education Data
Federal Reserve Bank of New York
Federal Housing Finance Agency (FHFA)
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