In some states, paying off credit card debt can be a lengthy and daunting process. A recent WalletHub study identifies such states, revealing where the journey to becoming debt-free takes the most time.
Alaska
Alaska tops the list with the longest payoff time of 17 months and 11 days. The state’s high median credit card debt of $3,859 contributes to its extended period. Alaska’s remote location and higher cost of living likely increased the reliance on credit cards. It leads to substantial balances that take longer to clear.
District of Columbia
The nation’s capital ranks 2nd, requiring 16 months and 23 days to pay off credit card debt. With a median debt of $3,613, residents of D.C. face significant financial challenges. The city’s high cost of living and urban lifestyle may contribute to greater credit card usage. It results in higher balances and prolonged repayment periods.
Vermont
Vermont’s 3rd place ranking surprises many, given its relatively low median debt of $2,770. However, it takes 14 months and 12 days to pay off, indicating potential economic challenges. Lower average incomes in the state may hinder residents’ ability to quickly clear their credit card balances. It leads to an extended repayment timeline.
Colorado
Colorado residents face a 14-month and 11-day journey to clear their credit card debt. The state’s median debt of $3,305 suggests a high cost of living and potentially active lifestyle choices. These factors may contribute to increased credit card usage and difficulty in rapid debt repayment.
New Mexico
Despite a lower median debt of $2,704, New Mexico residents need 13 months and 24 days to pay off their credit cards. This extended period hints at underlying economic challenges in the state. Lower average incomes and limited job opportunities may impede residents’ ability to quickly eliminate their credit card balances.
Oregon
Oregon’s 13-month and 21-day payoff period for credit cards reflects financial struggles despite a median debt of $2,829. The state’s diverse economic landscape, with urban centers and rural areas, may contribute to varied financial challenges. This diversity could result in some residents facing difficulties in swiftly clearing their credit card balances.
Connecticut
Connecticut’s high cost of living likely contributes to its 13-month and 19-day payoff period. With a median debt of $3,186, residents face significant financial burdens. The state’s expensive housing market and other living costs may lead to increased reliance on credit cards. It results in longer repayment timelines.
New Hampshire
New Hampshire’s 13-month and 19-day payoff period, coupled with $2,976 median debt, suggests financial challenges. Higher property taxes along with living expenses might result in increased debt. It potentially forces residents to rely heavily on credit cards and extend repayment periods.
Washington
Washington’s thriving tech industry may contribute to its 13-month and 17-day payoff period. The $3,080 median debt suggests that living expenses in urban areas are considerably higher as compared to rural areas. Rapid growth and inflated housing costs could lead to increased credit card usage and longer times for repayment for many residents.
Georgia
Georgia’s 13-month and 14-day credit card payoff period, with a median debt of $3,186 reflects potential economic disparities. The state’s mix of urban and rural areas may result in varied financial challenges. Some residents might struggle with lower incomes, leading to financial difficulties in quickly paying off credit card balances.
Wyoming
Wyoming’s 13-month and 13-day payoff period, despite a lower median debt of $2,749 indicates underlying economic issues. The state’s reliance on natural resource industries may lead to income volatility. This instability could result in increased credit card usage and extended periods of repayments for many residents.
Arizona
Residents of Arizona face a 13-month and 9-day journey to clear their $3,008 median credit card debt. The state’s growing population and rising living costs may contribute to increased reliance on credit cards. These factors could lead to higher balances and longer repayment periods for many Arizonians.
Virginia
Virginia’s 13-month and 9-day credit card payoff period, with a median debt of $3,044 hints at the economic imbalance. The state’s diverse economy, ranging from government jobs to rural industries, may result in varied financial challenges. This diversity could lead to some residents struggling with extended credit card repayment periods.
Massachusetts
It will take 3 months and 6 days to pay off credit card debt for the residents of Massachusetts. This timeline may be influenced by the state’s high education costs. With numerous prestigious universities, residents might accrue significant debt. The median credit balance of $2,931 suggests that education-related expenses could contribute to longer repayment time.
Maryland
Residents of Maryland have a median debt of $3,152 with a payoff period of 13 months and 4 days. This may be influenced by commuter expenses. Many residents work in nearby Washington D.C., which incurs high transportation costs. These expenses could lead to increased credit card usage and extended repayment timelines.
South Carolina
It takes the people of South Carolina 13 months and 3 days to repay credit card debt. Despite a low median debt of $2,896, the longer repayment period may be linked to its tourism-dependent economy. Seasonal employment and income fluctuations in tourist areas could lead to increased reliance on credit cards. This volatility may result in a longer repayment timeline for many residents.
Minnesota
Minnesota residents require 12 months and 26 days to pay off their credit card debt. With a median debt of $2,579, the longer timeline may be influenced by seasonal spending patterns. Harsh winters could lead to higher utility bills and indoor entertainment costs. These factors may contribute to increased credit card usage and a slightly longer repayment period.
Texas
Residents of Texas face a 12-month and 26-day journey to clear their $3,174 median credit card debt. The state’s diverse economy ranging from oil to tech, may lead to varied financial challenges. This diversity could result in some residents struggling with extended credit card repayment periods despite overall economic strength.