Residents in These 15 States Are Drowning in the Most Consumer Debt

Let’s start with the good news: Consumer debt grew at a slower rate in 2023 than in 2022. And now, for the not-so-great news: Personal debt still increased by 4.4% in 2023.

Consumer credit reporting company Experian ran a study shedding light on numerous aspects of personal debt among Americans. For the purposes of their analysis, consumer debt included secured and unsecured debt, such as credit cards, vehicle loans, and mortgages.

The following states are home to residents who hold the most amount of consumer debt as of 2023. Since mortgages are included in these numbers and homes are often an appreciating asset, not all of these residents hold debt that many financial experts would classify as bad. In fact, Experian notes that approximately two-thirds of all consumer debt Americans hold is from a mortgage.

1: Colorado

The average Coloradan has $154,481 in consumer debt, which is a 2.6% increase from 2022. Coloradans fall in the “good” range for their FICO credit score, with a 731 average score.

According to U.S. World & News Report, Colorado is the eighth-worst state for affordability. Housing is particularly a battle for residents, with it ranking as the fifth-most expensive state.

2: Washington

Washingtonians don’t look much better on the debt front than Coloradans, with $150,462 in average debt as of 2023. That’s a 2.3% increase in debt from 2022.

U.S. News ranks Washington as the second-best state in their “Best States Overall” category. However, affordability in the Evergreen State is rough, ranking 46 in the nation.

3: California

Between expensive places to live, like Beverly Hills and Silicon Valley, some people might be surprised that Californians don’t rank as having the highest amount of average consumer debt. Nevertheless, many people likely lose sleep over the $148,428 of debt the average California resident has.

California is the worst-ranking state for affordability, according to U.S. News. So, it’s easy to see how some residents might have to turn to their credit cards to help them get by.

4: Hawaii

$147,103 is the total amount of consumer debt the average Hawaiian has. That equates to a 1% increase from 2022. While 1% may not sound like a lot, imagine what it amounts to if residents increase their consumer debt by 1% year after year.

Hawaii falls right after California on the affordability front, being the second-worst state to get the most money out of your income.

5: Utah

Utah’s $138,485 in average consumer debt is a head-turner. What’s equally troubling for debt-holding residents is that there was a +2.6% change in debt balances between 2022 and 2023.

Unlike the previous four states, Utah isn’t overly expensive; it ranks 28th in the country for affordability. Given that The Church of Jesus Christ of Latter-day Saints is so popular in Utah and Mormons must pay 10% of their income to the church, perhaps Utahan Mormons would have relatively less debt if they didn’t pay a tithing.

6: Maryland

Maryland residents had relatively slower debt growth between 2022 and 2023, with a 0.4% increase. Nevertheless, Marylanders’ $131,948 in debt is still high compared to most of the nation.

According to Forbes, the total average cost of living in Maryland is $48,235. That leaves Marylanders with an average of $21,515 in disposable income, which they could put towards paying down their debt.

7: Idaho

Idaho residents hold an average of $120,766 in debt. The troubling part? That’s a 3.2% increase from 2022, where they “only” held $116,988 in debt.

U.S. News ranks Idaho as the third-best state in their “Best States Overall” category. It also ranks in the middle of the road for affordability. However, Redfin reported that in February 2024, the cost of a home had increased by 6.9% compared to the year prior, which can help explain why some residents have high debt.

8: Massachusetts

Residents from the states on this list might not see a lot of reason to celebrate. But here’s one for Massachusetts residents: The debt change in Massachusetts between 2022 and 2023 was only +0.1%, which amounted to an $111 increase That’s far under the rate of inflation.

The average Bay Stater has $127,277 in consumer debt and a 732 FICO credit score.

9: Virginia

Virginia residents reading this might be able to relate to their state’s $128,386 in average consumer debt. It’s little wonder that residents in the Mother of States have relatively high debt, given that Virginia ranks 39th in the country for affordability.

Nevertheless, there’s a reason why people love living there. Virginia ranks as the 13th-best state overall, according to U.S. News.

10: Oregon

Oregon’s ninth-place average consumer debt ranking with Experian is on par with U.S. News ranking it as the tenth-worst state for affordability. Oregonians have an average of $123,090 in consumer debt.

As Experian points out, inflation often plays a role in debt increases, such as Oregon’s 1.7% debt increase between 2022 and 2023.

11: Alaska

Given its remote location that can lead to high food and fuel prices, it’s easy to see why some Alaskans rack up debt to survive. Plus, housing is extremely expensive there.

The average Alaskan has $117,409 in consumer debt. That’s a 1.6% increase from 2022.

12: Arizona

Arizona’s consumer debt trajectory is troubling. The average debt a resident had in 2022 was $111,531. In 2023, it was $115,963, representing a 4% increase in the average amount of debt residents carry.

Interestingly, WalletHub determined through a study that four of Arizona’s cities ranked within the nine metros that have the least financially stressed residents. So, perhaps many Arizonans’ debt is in the form of equity-building debt like mortgages.

13: Connecticut

Connecticut residents carry an average of $109,519 in personal consumer debt. That’s a relatively better 0.5% increase from 2022.

Not only do Connecticuters have relatively high amounts of debt, but they also rank in 49th place in the nation for taxpayer debt. Ouch.

14: Nevada

Nevadans have $116,440 in consumer debt as of 2023, and many people are probably feeling the pinch. Between 2022 and 2023, Nevada residents experienced a 3.1% increase in total debt.

According to Blue Water Credit, the debt-to-income ratio among Nevada residents is off balance. The Urban Institute even found that 47% of residents had one or more debts that went to collections.

15: Wyoming

Wyoming squeezes into last place on this list, with residents having an average debt of $108,846. Luckily for residents, this is a 0.3% decline from 2022.

However, $108,846 sounds like a lot of consumer debt compared to other states. West Virginians have the lowest average debt in the nation, at $64,320.

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