With Americans having increased their collective credit card debt by $52 billion last year, and the grand total at around $1.3 trillion, the personal-finance website WalletHub today released its report on the States Where It Will Take the Longest to Pay Off Credit Card Debt, as well as expert commentary. Alongside this report, WalletHub also released its Financial Insecurity Survey, which examined the connection between people's financial self-image and their mental health.
We drew upon data from TransUnion, the Federal Reserve, the U.S. Census Bureau and WalletHub’s proprietary credit card payoff calculator to determine the cost and time required to repay the median credit card balance in each of the 50 states and the District of Columbia.
| Longest Payoff Timeline | Shortest Payoff Timeline |
| 1. Alaska | 42. Ohio |
| 2. District of Columbia | 43. Nebraska |
| 3. Vermont | 44. Iowa |
| 4. Colorado | 45. West Virginia |
| 5. New Hampshire | 46. Hawaii |
| 6. Connecticut | 47. Pennsylvania |
| 7. Oregon | 48. Louisiana |
| 8. Wyoming | 49. Utah |
| 9. Washington | 50. Kentucky |
| 10. New Mexico | 51. Mississippi |
Survey Key Findings
- Government Debt Anxiety: 63% of Americans say the U.S. government’s debt level is making them feel financially insecure.
- Money and mental health: Nearly 3 in 4 people say their financial situation impacts their mental well-being.
- Retail therapy: 61% of Americans say they spend money to improve their mood.
- Financial Guidance Fears: Nearly 2 in 5 people are scared to ask for financial advice.
- Widespread insecurity: 69% of Americans feel insecure about their finances.
- Budgeting Confidence: 80% of Americans say budgeting makes them feel more financially secure.
“Looking at the median credit card debt in a state can give you a good idea of whether people are struggling or doing well compared to people in other states, but it’s also important to look at how much residents put toward paying their debts off each month. Low average payments lead to long payoff timelines, which in turn lead to high amounts of interest accrued. For example, Vermont’s median credit card debt is relatively low, but it ranks as the state with the third-biggest debt problem due to low average monthly payments.”
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“Alaska is the state with the biggest credit card debt problem, with the median amount per person reaching $3,683. Given that the average person in Alaska pays $259 toward their credit card bill each month, it would take more than 16 months to pay off their entire debt, and they would pay $553 in interest.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What daily behaviors lead people to amass credit card debt?
“People get in trouble with credit cards by carrying balances, which typically come with high interest rates. Credit cards should be used for convenience, not for making purchases that you haven’t budgeted for and can’t afford. Only make credit card purchases that you can immediately pay in full. Paying your credit card debt in full each month has the added benefit of positively affecting your credit score.”
Gary Simmerman, MBA, MPS, CFP® – Adjunct Faculty, Southern New Hampshire University
“Daily behaviors that contribute to credit card debt include: Impulse spending on non-essential items, such as dining out, entertainment, or online shopping. Relying on credit for basic needs because of poor budgeting or lack of income (e.g., groceries, gas, or rent). Minimum payments only, which cause interest to accumulate. Lack of financial awareness, such as not tracking expenses or ignoring account balances. Using credit to maintain a lifestyle beyond one's means, often fueled by social pressure or comparison.”
Debby Lindsey-Taliefero, PhD – Professor Emeritus, Howard University
What are three easy steps a person should take in order to become debt-free?
“1. Establish a budget that includes your monthly debt payments. Your total budgeted expenses must be less than your income. 2. Stop using your credit cards. If this is impractical, find the least expensive credit card possible that will support your usage habits. And use your credit card only for purchases that you can immediately pay in full. 3. You might consider using savings to pay off your debts. However, this should be a one-time-only solution. Do not get in the habit of repeatedly running up debt and then tapping into your savings to pay it off.”
Gary Simmerman, MBA, MPS, CFP® – Adjunct Faculty, Southern New Hampshire University
“To move toward becoming debt-free, consider: Create a realistic budget to track income and control spending – prioritize needs over wants. Use a repayment strategy, such as the debt snowball (from smallest to largest balances) or debt avalanche (from highest to lowest interest rate). Avoid new debt by using cash or debit for purchases and building an emergency fund to reduce reliance on credit cards.”
Debby Lindsey-Taliefero, PhD – Professor Emeritus, Howard University
What steps can a person take to be better prepared for unpredictable financial difficulties?
“An emergency fund is a must! You should build savings in an emergency fund equal to three-to-six months of your non-discretionary expenses. Your non-discretionary expenses are the expenses that you will still have to meet if you lose your job. A sufficient emergency fund makes it more likely that when unpredictable financial difficulties arise you are prepared to handle those difficulties without incurring debt.”
Gary Simmerman, MBA, MPS, CFP® – Adjunct Faculty, Southern New Hampshire University
“Preparation for financial uncertainty includes: Building an emergency fund with 3–6 months' worth of living expenses. Getting adequate insurance (health, auto, home/renters, and disability). Reducing fixed expenses to improve flexibility in hard times. Diversifying income streams (side jobs, freelancing, investments). Maintaining good credit ensures access to lower-cost borrowing options if necessary.”
Debby Lindsey-Taliefero, PhD – Professor Emeritus, Howard University
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