States with Largest and Smallest Debt Increases

from WalletHub, Nov 8, 2023

Access to the wide variety of loan products on the market today has made it easier for Americans to purchase what they need when they need it. This convenience comes with a price, though. Not only do loans charge interest rates and fees, but they also add to your overall debt load, which can hurt your credit score. With household consumer debt reaching $17.29 trillion nationwide in the third quarter of 2023, it’s clear that Americans are leveraging the loan opportunities available today.

While consumers in some states are adding to their debt at an alarming rate, others are contributing less to the nationwide debt increase.

To determine the states with the largest and smallest household debt increases, WalletHub compared the 50 states based on the latest consumer-finance data available from TransUnion and the Federal Reserve….

In-Depth Look at the States with the Largest Increases in Q3 2023

Hawaii

Hawaii residents had the largest debt increase in Q3 2023 at $1,093 per household. With the state’s remote location, limited land availability, and high demand for goods and services, Hawaii is known for having a high cost of living. This can make it challenging for residents to make ends meet, leading many to rely on credit and loans to help cover costs for housing, groceries, transportation, and other essentials.

Hawaii’s economy heavily depends on tourism, making crises such as the COVID-19 pandemic and the recent Maui wildfires far more devastating to their financial security. The state’s job market does not offer the same diversity of employment opportunities found on the mainland, limiting residents’ job choices and income potential.

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