U.S. states with the most and least debt

A Credit Karma Study

Updated April 19, 2023

Written by: Gaby Lapera

We looked at debt two different ways for this article: We looked at average gross debt for individuals and debt-to-income ratio. The first measure helps us understand how much debt people have, while the debt-to-income ratio can illuminate how that debt can affect their lifestyle.

Credit Karma Stat Snapshot

State with the highest debt:

Washington

State with the lowest debt:

West Virginia

State with the highest DTI:

Hawaii

State with the lowest DTI:

New York

States with the most and least debt

We used data from 78.2 million Credit Karma members with a combined overall debt of $7 trillion to figure out in which states Americans had the most and least debt. For this article, overall debt is defined as any type of debt noted on a Credit Karma member’s credit report. This includes credit card, mortgage, student loan, medical loan, auto lease and auto loan debt.

In the fourth quarter of 2022, average total overall debt among Credit Karma members was $49,454. The median debt in the last three months of 2022 was $11,223, which means that some folks had significantly higher amounts of debt that pulled the average upward.

Here are the five states where members had the highest average amount of debt:

Note: The District of Columbia had the highest average debt at $77,810, but it isn’t technically a state.

Here are the five states where members had the lowest average amount of debt:

The following map illustrates the average overall debt by state.

Credit Karma members’ average debt by state

We also took a look at different types of debt. As you go through the different categories, you’ll notice certain states appearing over and over. For example, the District of Columbia lands in the top five highest average debt list for credit cards, mortgages and student loans. Mississippi and Iowa make a couple of appearances in the lowest average debt lists.

Credit card debt

From October to December of 2022, approximately 74 million Credit Karma members with at least one credit card held a combined total of $397 billion in credit card debt.

The average credit card balance among members during this period was $6,469. The median debt was $3,003, meaning that some Credit Karma members had much higher credit card balances than the typical person in the group. In this scenario, the median is much more indicative of what a typical Credit Karma member has in terms of credit card debt.

Here are the five states where members had the highest average amount of credit card debt:

Note: The District of Columbia had the third highest average debt at $7,347, but it isn’t technically a state. That means that there’s an interesting cluster of credit card debt around Washington, D.C. and extending up to New Jersey.

Here are the five states where members had the lowest average amount of credit card debt:

Auto loan debt

From October to December of 2022, about 55 million Credit Karma members with at least one auto loan open held more than $823 billion in auto loans. The average auto loan balance among members was $24,042. The median debt was $18,929.

Here are the five states where members had the highest average amount of auto loan debt:

Here are the five states where members had the lowest average amount of auto loan debt:

Mortgage debt

In the fourth quarter of 2022, some 29 million Credit Karma members with at least one mortgage held a total of $5.1 trillion in mortgage debt. The average mortgage balance among members was $235,194. The median mortgage debt was $186,590.

Here are the five states where members had the highest average amount of mortgage debt:

Note: The District of Columbia had the highest average mortgage debt at $452,712, but it isn’t technically a state.

Here are the five states where members had the lowest average amount of mortgage debt:

Student loan debt

In the fourth quarter of 2022, approximately 28.4 million Credit Karma members with at least one student loan open held a total of $660 billion across 63 million student loans.

The average student loan balance among members in Q4 of 2022 was $32,004. The median debt was $16,150.

Here are the five states where members had the highest average amount of student loan debt:

Note: The District of Columbia had the highest average student loan debt at $47,919, but it isn’t technically a state.

Here are the five states where members had the lowest average amount of student loan debt:

States with the highest and lowest debt-to-income ratios

We used the debt-to-income, or DTI, data from the New York Federal Reserve’s Q2 2022 report, the most recent version available.

When looking at a debt-to-income ratio, a number above one means that people have taken on more debt than they have income.

Hawaii had the highest DTI at 2.31, which lines up with our study on cheapest states to live in. Credit Karma found that Hawaii was the most expensive state. Hawaii has:

• The second highest median home sales price
• The highest average monthly rent
• The highest cost of living

With all of those factors combined, it’s perhaps unsurprising that Hawaii also has a high DTI.

The District of Columbia had the lowest DTI at 0.53, but it’s not considered a state. New York has the next lowest DTI at 0.98.

D.C. has an extremely high median income. This could potentially allow residents to be able to balance their finances more successfully.

New York City is notoriously expensive, but it also has some of the richest counties in the country. Like D.C., this might help offset the costs of living in an expensive place.

Here are the five states with the highest debt-to-income ratios:

Here are the five states with the lowest debt-to-income ratios:

Tips to pay down debt

No matter where you live or what type of debt you have, paying it down can be tough. If you’re having trouble managing your debt, you’re not alone. Here are a few things to try:

Create a budget and stick to it

Planning and writing down a monthly budget can be key to getting on top of your debts. Just be realistic about your spending habits and limitations, and revisit and adjust your budget as needed.

Consolidate your debt

This can help if you’re juggling multiple payments on several high interest loans, like credit cards. One way to consolidate all that debt is by taking out a personal loan, which can come with lower interest rates than credit cards. But keep in mind that this type of loan generally only makes sense if you’re able to get a lower interest rate on your loan than you’re paying across your existing debts.

You can also consolidate your high-interest debt using a balance transfer credit card. These types of cards often offer an introductory 0% interest rate for balance transfers during a promotional period, allowing you to put more money toward paying down your principal and less toward interest.

Consider all your options options for debt consolidation as you look for the right solution for your situation.

Cut small expenses

Think about those streaming services like Spotify, Netflix or Hulu. Are there any mobile apps or other monthly subscriptions you don’t need? If you only use them occasionally, you might want to cancel.

Canceling a single monthly subscription of $10.99 could save you around $132 over the course of a year, freeing up more money to pay down debt. You might also consider free weekend activities instead of big dinners or outings, or other cost-cutting ideas.

These expenses might seem small, but they can add up over time. You might be surprised how much financial breathing room you can create for yourself by cutting them out of your budget.  

Methodology

This report drew on 78.2 million Credit Karma users who had been active on the site within the last 36 months. All aggregate data analyzed was pulled on January 6, 2023, and came from members’ TransUnion credit reports. Averages were based on information from the previous 90 days.

The debt-to-income ratio came from the New York Federal Reserve’s Q2 2022 report.