The six states with the most credit card debt revealed
Americans are tapping and swiping their credit cards at a shocking clip. Consumers are combating inflation with a record-setting arsenal of credit card debt — to the tune of $1.18 trillion. That's the second-highest credit card debt total in US history. The only time it's been higher was the final quarter of 2024.
While balances dipped slightly in the first quarter of 2025, experts don't expect America's reliance on swiping plastic to ease any time soon. Inflation is projected to climb in the coming months, and the Federal Reserve's interest rates remain elevated — a one-two punch that could drive even more consumers deeper into debt. In some surprising corners of the country, that pressure is already mounting.
Credit card holders in New Jersey, Maryland, Connecticut, Massachusetts, California, and Florida are carrying the most debt, according to new LendingTree data. The average cardholder in those six states owes more than $9,000 — far above the national average of $7,321. But directionally, credit card debt is all headed the same way.
Each of those top-debt states saw balances rise over the past year, contributing to a nationwide average increase of 5.8 percent. New Jersey leads the pack with the highest average balance in the country at $9,382. The Garden State took that debt crown from Alaska. Last year's highest credit card debt state dropped to the seventh highest average in this year's rankings.
But the most dramatic movement came from Georgia. The Peach State posted the fastest year-over-year growth in the country, with average card debt surging more than 20 percent — from $6,592 to $7,943. Meanwhile, the lowest balances are concentrated in the South, where wages and prices have encountered fewer increases than the rest of the US
Mississippi residents carry the lightest load, with an average balance of $5,221. That's a 3 percent increase over last year. Kentucky and Arkansas follow, both with slightly higher balances and small year-over-year declines. In total, just 11 states saw average debt levels fall over the past year.
Louisiana led the way with an 8.4 percent drop, followed by North Dakota and Iowa, which each posted declines over 5 percent. The remaining 40 states — plus Washington, D.C. — recorded increases in average balances ranging from 0.6 percent to 20.5 percent. A representative for LendingTree did not immediately respond to DailyMail.com’s request for comment.
Experts have previously warned DailyMail.com that shoppers should try to pay off their credit card debt as soon as possible. Other financial analysts are warning Americans to cut back on unnecessary spending in order to stave off increasing debts.
But shoppers are saying their ability to cut back spending is becoming increasingly difficult. Inflation rates, which peaked over nine percent in 2022, have persisted throughout the economy, forcing shoppers to spend more on everyday needs like groceries, fuel, and housing.
'Why does everything seem to break the bank as an average 40 hour a week worker?' one Redditor asked. 'Now it seems like we can barely afford to buy a cart of groceries.'
