On Tuesday, the financial website Credit Cards revealed the states where Americans were accumulating the most debt on their credit cards, with Mississippi as the state with the highest debt burden relative to income and Massachusetts the more low.
For the report, the agency also looked at states where consumers found it harder or easier to pay off their debts. “By comparing average credit card balances to average household income, this study seeks to determine where credit card debt is most and least difficult to pay off,“ said senior analyst at Credit Cards Industry, Ted Rossman.
In addition, the average annual family income, credit card balances, and total interest were taken into account for the analysis. “Mississippi, for example, has the sixth lowest average credit card balance, which sounds pretty good. But it has the lowest median household income of any state, which makes credit card debt that much harder to pay off in the Magnolia state,“ Rossman said.
Behind Mississippi, in second place is Oklahoma with an annual income of $75,430 and an average credit card balance of $5,491 with a payment period of 21 months.< /p>
In third place is Louisiana with a median household income of $75,590, a credit card balance of $5,429, and a payment period of 21 months.
For their part, the states Top performers in the Credit Cards report are: Massachusetts ranked #1 with median annual household income of $124,789, median credit card balance of $5,633, and 13-month repayment period.
In second place is Washington, DC, with a median household income of $138,856 a year, an average credit card balance of $6,519, and a 13-month payment term.
Finally, in third place is Minnesota with an annual household income of $103,305 and an average credit card balance of $5,197.