Editor’s Word: This story initially appeared on SmartAsset.com.
Credit playing cards will be helpful, particularly when you use them responsibly to realize factors, airline miles and different perks.
That stated, it’s simple to let your bank card debt get uncontrolled and find yourself in deep trouble. For the second quarter of 2021, Experian says that the common card stability was $5,525 nationally, which is definitely down from three years in the past from when it stood at $6,505.
Conserving this in thoughts, SmartAsset ranked the states the place debt is changing into extra manageable for shoppers. For particulars on how we discovered and analyzed our information, learn the information and methodology part on the finish.
1. Rhode Island
Rhode Island leads this research in bank card debt discount over each three years and one yr, happening 11.88% and eight.81% respectively. That stated, it’s nonetheless in the course of the pack when it comes to the common debt, putting twenty sixth at $5,324.
The typical bank card debt in Wisconsin is simply $4,587, the bottom within the nation. That represents 7.15% of median revenue, the ninth-lowest proportion noticed on this research. Debt went down 6.55% over the previous three years, putting the state at twenty fourth out of 51 for this metric.
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Indiana has the fourth-lowest common debt within the nation, simply $4,796. That’s an 8.06% drop from the common of $5,216 in 2020, the fourth-biggest one-year distinction noticed on this research. The three-year change is a 7.31% drop, rating twenty second.
Ohio noticed common bank card debt go down 9.57% from 2018 to 2021, the seventh-biggest three-year drop recorded on this research. The typical Q2 2021 debt is $5,494. That’s 8.47% of the median revenue, rating Ohio thirtieth in that metric.
Michigan has the seventh-lowest Q2 2021 median debt, sitting at $4,850. That's an 8.66% lower over three years and a 6.98% lower over one yr, rating fifteenth and Nineteenth respectively.
6. New Mexico
New Mexico ranks thirty fourth for common Q2 2021 bank card debt ($5,203). It has the fourth-biggest three-year change with a 10.35% decline from 2018. And likewise the second-biggest one-year change, happening 8.75% from 2020.
7. New Hampshire
The median Q2 2021 bank card debt in New Hampshire is $5,496, rating thirty first general for this metric. That stated, it makes up 7.05% of the median revenue within the state, putting the Granite State sixth-lowest in that metric. That is additionally a drop of 9.82% from 2018, rating fifth.
Maryland really ranks close to the underside of this research for bank card debt in Q2 of 2021, ending forty sixth at $6,164. That debt, nevertheless, makes up solely 7.11% of median revenue, the seventh-lowest within the research. Maryland finishes thirteenth for each metrics measuring change, with debt happening 8.96% over three years and seven.09% over one yr.
Delaware noticed common bank card debt go from $6,176 in 2018 to $5,581 in Q2 of 2021, the sixth-largest drop (9.64%) on this research. The 2021 debt common makes up 7.95% of median revenue within the state, putting Nineteenth-lowest.
Kentucky’s common Q2 2021 bank card debt is $4,772, the third-lowest within the nation. That could be a 7.47% drop from 2020, which is the seventh-biggest one-year drop noticed on this research. The determine makes up 9.13% of the median revenue in Kentucky, rating thirty sixth.
Knowledge and Methodology
To seek out the states the place bank card debt is changing into extra manageable, we in contrast all 50 states plus Washington, D.C., throughout the next metrics:
- Common bank card debt 2021. Knowledge is for the second quarter of 2021 and comes from Experian.
- 2021 common bank card debt as a proportion of median revenue. Debt determine comes from Experian and revenue determine comes from the 2019 1-year American Neighborhood Survey.
- Three-year change in common bank card debt. Knowledge comes from Experian and is for 2018 and 2021.
- One-year change in common bank card debt. Knowledge comes from Experian and is for 2020 and 2021.
First, we ranked every state in every metric. We then discovered each state’s common rating, weighting each metric equally. We ranked the states based on this common rating, giving an index rating of 100 to the highest state and an index rating of 0 to the underside state.