An Austin, Texas company released a study Wednesday that reveals which U.S. states hold the most credit card balances relative to the average incomes residents in those states earn.
The Upgraded Points study underscores that an average 41.2 percent of Americans do not pay off their balances in full each month. Upgraded Points used the data compiled from each state to create both a chart and an interactive, visual map of the U.S., allowing readers to view the data for themselves.
“We analyzed how big of a balance the average person in each state carries on their credit card, as well as how much credit they use as a percentage of their annual income. The results were sometimes surprising — states that held the most credit card debt were not always the states we would have guessed,” said Upgraded Points Founder, Alex Miller.
Some of the credit card balance results from the study revealed that:
When UP looked into which states hold the highest credit card balances as a percentage of average income, the results were somewhat different:
The final results of the study were fairly clear: the average American has a high amount of credit card debt in relation to their income — around 9 percent. UP estimates that average Americans only receive 8.3 percent of their monthly income after all living expenses are paid. If American credit card debt is then over 8.3 percent, it is thus impossible to pay off that debt with income alone. This is the reality in which most Americans find themselves. They are forced to either use their savings to pay off debt, or be in the unenviable position of carrying a balance.
Concerning the debt-problem overtones of this current research, UP notes that: “Having a credit card balance isn’t an issue as long as you pay it off in full every month. But when you have a high amount of credit card debt relative to your income, then you might fall into a situation where you can’t pay off your credit cards. That’s when credit can get you in trouble!”
UP routinely uses such credit card studies as a way to improve its own client services. An innovative travel company, UP explores the myriad ways that accumulated points and miles might be better purposed to help travelers.
Schedule Summary: President Joe Biden will deliver remarks at the White House Correspondents' Dinner on Saturday evening.…
Many of us have been watching the images of the protests on the Columbia, Yale,…
A parental rights organization filed civil-rights complaints against two school districts in Colorado on Friday,…
President Joe Biden received the lowest 13th-quarter approval ratings in modern history heading into an…