With Americans projected to increase their collective credit card debt by $100 billion this year, and the grand total at nearly $1.4 trillion, the personal-finance company 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.
To determine the time and cost required to repay the median credit card balance in each of the 50 states and the District of Columbia, we drew upon data from TransUnion, the Federal Reserve, and the U.S. Census Bureau, then used WalletHub’s proprietary credit card payoff calculator.
Survey Key Findings
“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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“The District of Columbia has the worst credit card debt problem in the nation, with the median debt reaching $3,647 across an average of three credit cards per person. The average resident pays $255 per month on their credit card debt, which means it would take an average of over 16 months to pay off their debt and they would accrue $541 in interest during that time.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What daily behaviors lead people to amass credit card debt?
“Daily behaviors that can lead to credit card debt include impulse spending, poor budgeting, overspending on nonessential items, relying on credit cards for routine purchases, failing to track expenses, making only minimum payments, and lacking the discipline to live within one's means.”
Guan Jun Wang, Ph.D. – Professor, Union University
“Many behaviors can lead to amassing credit card debt, with the most frequent being impulse buying. It is so easy to purchase anything online or on your phone with a single click or tap. Often, that purchase is impulse-driven, and people do not always have a plan to repay the credit card balance. For example, people use a credit card to purchase everyday necessities such as groceries when they are hungry, and impulse buying creeps in. This leads to overspending, paying only the minimum balance, and incurring high credit card interest, making the balance far worse than that of simple purchases. Another significant behavior is spending beyond your means. Many people pay for entertainment or vacations with their credit cards without a repayment plan in place. It is important to note that many entertainment and vacation purchases are safest to make online with a credit card. However, it is also very easy to use cash intended for repayment for other purposes, leading to unpaid balances that accrue large amounts of interest. These habits can make debt harder to manage; in some cases, debt can still be worth it.”
Jeanette Landin, Ed.D., MBA – Professor, Landmark College
What are the key situations when going into debt is worth it?
“It is worth going into credit card debt for true emergencies. This might include an unexpected medical expense, major car repair needed to maintain employment, or urgent household repair such as a new furnace or roof replacement. Ideally, someone would save money in a liquid savings account for these types of emergencies, but this is not always possible. In these cases, someone should pay off the debt as quickly as possible to avoid costly interest expenses.”
Chris Douglas – Professor The University of Michigan-Flint
“Not all debt is bad. The key consideration is whether the debt creates future value or improves long-term financial outcomes. Examples of productive debt include: education that increases earning potential, purchasing a reasonably priced home that fits within a sustainable budget, starting or expanding a business with a realistic revenue plan, financing reliable transportation needed to maintain employment. Before taking on debt, I encourage individuals to ask themselves one simple question: ‘Will this purchase improve my future financial position, or is it simply satisfying a short-term desire?’ When debt helps build assets, generate income, or increase opportunities, it can be a valuable financial tool. When debt is used to fund everyday living expenses, it often signals a larger budgeting or cash flow challenge.”
Nicole Hickson, MSM, PHR – Professor, Atlanta Metropolitan State College
What steps can a person take to be better prepared for unpredicted financial difficulties?
“One important step would be to create an emergency fund. Your emergency fund should ideally be about six months of income, but having even $500-1,000 would cover an emergency… Even a few dollars each paycheck could help defray the cost of a future emergency. Second, create a budget. Many apps…offer computer and smartphone access to manage your money realistically, based on your spending habits and savings needs. These apps often sync with your bank and credit card, if desired, and offer real-time insights that can help you improve your emergency fund balance. Finally, review your financial situation regularly. Look at your insurance coverages and benefits, bank and credit balances, and goals. You could find hidden gems, such as vacation discounts or emergency auto service coverage, that could save you money. Getting rid of credit card debt does not mean you have to stop enjoying life – just plan for it wisely and use the tools already available to you.”
Jeanette Landin, Ed.D., MBA – Professor, Landmark College
“A person can prepare for unexpected financial difficulties by building and maintaining an emergency fund to cover several months of living expenses. In addition, living within one's means, reducing unnecessary debt, and maintaining access to credit can provide financial flexibility. As a last resort, a credit card may be used to cover emergency expenses when other resources are unavailable.”
Guan Jun Wang, Ph.D. – Professor, Union University
To determine the time and cost required to repay the median credit card balance in each of the 50 states and the District of Columbia, we drew upon data from TransUnion, the Federal Reserve, and the U.S. Census Bureau, then used WalletHub’s proprietary credit card payoff calculator.
| Longest Payoff Timeline | Shortest Payoff Timeline | |
| 1. District of Columbia | 42. Ohio | |
| 2. Alaska | 43. Iowa | |
| 3. Vermont | 44. Mississippi | |
| 4. Colorado | 45. Pennsylvania | |
| 5. Connecticut | 46. Hawaii | |
| 6. Washington | 47. Kentucky | |
| 7. Massachusetts | 48. Utah | |
| 8. New Mexico | 49. Arkansas | |
| 9. New Hampshire | 50. Montana | |
| 10. Oregon | 51. West Virginia |
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.”
–
“The District of Columbia has the worst credit card debt problem in the nation, with the median debt reaching $3,647 across an average of three credit cards per person. The average resident pays $255 per month on their credit card debt, which means it would take an average of over 16 months to pay off their debt and they would accrue $541 in interest during that time.”
- Chip Lupo, WalletHub Analyst
Expert Commentary
What daily behaviors lead people to amass credit card debt?
“Daily behaviors that can lead to credit card debt include impulse spending, poor budgeting, overspending on nonessential items, relying on credit cards for routine purchases, failing to track expenses, making only minimum payments, and lacking the discipline to live within one's means.”
Guan Jun Wang, Ph.D. – Professor, Union University
“Many behaviors can lead to amassing credit card debt, with the most frequent being impulse buying. It is so easy to purchase anything online or on your phone with a single click or tap. Often, that purchase is impulse-driven, and people do not always have a plan to repay the credit card balance. For example, people use a credit card to purchase everyday necessities such as groceries when they are hungry, and impulse buying creeps in. This leads to overspending, paying only the minimum balance, and incurring high credit card interest, making the balance far worse than that of simple purchases. Another significant behavior is spending beyond your means. Many people pay for entertainment or vacations with their credit cards without a repayment plan in place. It is important to note that many entertainment and vacation purchases are safest to make online with a credit card. However, it is also very easy to use cash intended for repayment for other purposes, leading to unpaid balances that accrue large amounts of interest. These habits can make debt harder to manage; in some cases, debt can still be worth it.”
Jeanette Landin, Ed.D., MBA – Professor, Landmark College
What are the key situations when going into debt is worth it?
“It is worth going into credit card debt for true emergencies. This might include an unexpected medical expense, major car repair needed to maintain employment, or urgent household repair such as a new furnace or roof replacement. Ideally, someone would save money in a liquid savings account for these types of emergencies, but this is not always possible. In these cases, someone should pay off the debt as quickly as possible to avoid costly interest expenses.”
Chris Douglas – Professor The University of Michigan-Flint
“Not all debt is bad. The key consideration is whether the debt creates future value or improves long-term financial outcomes. Examples of productive debt include: education that increases earning potential, purchasing a reasonably priced home that fits within a sustainable budget, starting or expanding a business with a realistic revenue plan, financing reliable transportation needed to maintain employment. Before taking on debt, I encourage individuals to ask themselves one simple question: ‘Will this purchase improve my future financial position, or is it simply satisfying a short-term desire?’ When debt helps build assets, generate income, or increase opportunities, it can be a valuable financial tool. When debt is used to fund everyday living expenses, it often signals a larger budgeting or cash flow challenge.”
Nicole Hickson, MSM, PHR – Professor, Atlanta Metropolitan State College
What steps can a person take to be better prepared for unpredicted financial difficulties?
“One important step would be to create an emergency fund. Your emergency fund should ideally be about six months of income, but having even $500-1,000 would cover an emergency… Even a few dollars each paycheck could help defray the cost of a future emergency. Second, create a budget. Many apps…offer computer and smartphone access to manage your money realistically, based on your spending habits and savings needs. These apps often sync with your bank and credit card, if desired, and offer real-time insights that can help you improve your emergency fund balance. Finally, review your financial situation regularly. Look at your insurance coverages and benefits, bank and credit balances, and goals. You could find hidden gems, such as vacation discounts or emergency auto service coverage, that could save you money. Getting rid of credit card debt does not mean you have to stop enjoying life – just plan for it wisely and use the tools already available to you.”
Jeanette Landin, Ed.D., MBA – Professor, Landmark College
“A person can prepare for unexpected financial difficulties by building and maintaining an emergency fund to cover several months of living expenses. In addition, living within one's means, reducing unnecessary debt, and maintaining access to credit can provide financial flexibility. As a last resort, a credit card may be used to cover emergency expenses when other resources are unavailable.”
Guan Jun Wang, Ph.D. – Professor, Union University
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