LEXINGTON, Ky. (WTVQ) – Americans are known for racking up credit-card debt, but just how much we have in total is shocking.
At the beginning of 2020, Americans owed over $1 trillion in credit-card debt. And with the coronavirus pandemic about to enter a sixth month, those numbers are growing, even as the federal government tries to pump financial health into consumers’ pocketbooks.
The personal-finance website WalletHub projects net credit card debt will increase by $80 billion in 2020.
But Americans aren’t all in the same boat when it comes to that debt. People in some states charge less than others, whether because they are less impacted by the pandemic, are more responsible about their finances or a number of other factors.
Kentucky, some of its neighbors and several Deep South states do better than many of their counterparts, according to WalletHub’s new report on the States with the highest and lowest credit card debts.
To determine which states have the least and most sustainable credit-card debts, WalletHub used data from TransUnion, the Federal Reserve, the U.S. Census Bureau and its own 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.
Kentucky ranked 10th best — 42nd — in the country in low median credit card debt and time expected to pay it off. The state’s numbers were:
— Median Credit-Card Balance ($2,213)
— Median Income ($41,808)
— Cost of Interest Until Payoff ($176)
— Expected Payoff Timeframe (11 months and 25 days)
Ohio is 40th, Indiana 41st, Tennessee 43rd, Arkansas 47th, West Virginia 48th, Alabama 50th and Mississippi 51st.