Personal Finance

Best way to pay off credit card debt? Move to Indiana

By July 30, 2019 No Comments

Collectively, Americans owe more than $1 trillion in credit card debt.

Despite the strong preference for plastic, that burden is not felt across the board. Residents in some states are faring better than others when it comes to paying down their balances, according to a new report by WalletHub.

Using the median credit card balance and monthly credit card payment of residents in each state based on credit data from TransUnion and the Bureau of Labor Statistics, the personal finance site determined the required number of months to pay off that balance and the finance charges that would result, assuming an average 16.91% annual percentage rate.

From there, WalletHub ranked the states from least sustainable credit card debt — or longest payoff timeline — to shortest.

In Indiana, for example, where the average balance is only $2,313, it would take a little less than 10 months to pay that back while racking up $167 in interest charges.

In Alaska, however, the average balance is $4,144 — nearly twice as much — and that would take 19 months, or  more than a year and a half, to pay off, while ringing up $575 in finance charges.

Here is the nationwide rundown:

States with the Highest & Lowest Credit-Card Debts

Rank* State Median Credit-Card Debt Cost to Pay off Months & Days Until Payoff
1Alaska“$4,144 “$57519 months and 11 days
2District of Columbia“$3,242 “$40417 months and 12 days
3Vermont“$2,227 “$24715 months and 14 days
4Washington“$2,880 “$31315 months and 3 days
5Colorado“$2,985 “$32415 months and 3 days
6Oregon“$2,641 “$28214 months and 29 days
7Wyoming“$2,712 “$29014 months and 29 days
8Virginia“$3,081 “$32714 months and 26 days
9Montana“$2,579 “$26914 months and 17 days
10New Mexico“$2,613 “$26814 months and 7 days
11Kansas“$2,574 “$26414 months and 7 days
12Texas“$2,860 “$29214 months and 4 days
13Idaho“$2,426 “$24714 months and 4 days
14North Dakota“$2,385 “$23613 months and 24 days
15Georgia“$2,786 “$27413 months and 22 days
16Utah“$2,508 “$24613 months and 20 days
17Massachusetts“$2,459 “$24113 months and 19 days
18California“$2,672 “$26113 months and 18 days
19Arizona“$2,686 “$26213 months and 17 days
20Minnesota“$2,510 “$24513 months and 17 days
21Oklahoma“$2,628 “$25513 months and 15 days
22North Carolina“$2,593 “$25113 months and 14 days
23New Hampshire“$2,511 “$24213 months and 11 days
24Nevada“$2,645 “$25413 months and 9 days
25Maryland“$2,819 “$27013 months and 8 days
26Tennessee“$2,544 “$24313 months and 8 days
27Michigan“$2,343 “$22413 months and 7 days
28South Carolina“$2,579 “$24513 months and 4 days
29Maine“$2,265 “$21413 months and 2 days
30Connecticut“$2,755 “$26013 months
31Wisconsin“$2,120 “$19712 months and 29 days
32Missouri“$2,460 “$22812 months and 29 days
33Florida“$2,603 “$23912 months and 22 days
34New York“$2,600 “$23812 months and 22 days
35Louisiana“$2,600 “$23712 months and 19 days
36New Jersey“$2,701 “$24612 months and 19 days
37Illinois“$2,665 “$24112 months and 17 days
38Rhode Island“$2,392 “$21612 months and 15 days
39Iowa“$2,091 “$18812 months and 14 days
40West Virginia“$2,331 “$21012 months and 14 days
41Nebraska“$2,302 “$20712 months and 13 days
42Ohio“$2,325 “$20712 months and 9 days
43Arkansas“$2,353 “$20211 months and 29 days
44Hawaii“$2,868 “$24611 months and 28 days
45South Dakota“$2,449 “$20911 months and 25 days
46Delaware“$2,515 “$21311 months and 23 days
47Pennsylvania“$2,344 “$19811 months and 21 days
48Alabama“$2,451 “$20611 months and 19 days
49Kentucky“$2,248 “$18711 months and 14 days
50Mississippi“$2,258 “$17010 months and 9 days
51Indiana“$2,313 “$1679 months and 29 days

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