US credit card debt climbs to over $4,300 per person, study finds

Credit card debt has surged across the United States over the last year, with Alaska and Hawaii reporting the highest average per-person debt exceeding $5,200. This figure surpasses the national average of $4,350, indicating a widespread financial strain on American households. New Jersey and New York also show significant per-person debt levels, well above the national average.

Achieve, a digital personal finance company, analyzed data from the Federal Reserve Bank of New York to compile the study. Their findings reveal that the increase in debt is not confined to specific regions, as no state saw a decrease in average credit card balances over the year. This suggests a pervasive issue affecting consumers nationwide.

California, in particular, experienced the largest annual increase in average per-person debt, rising by over $260. Conversely, states like Mississippi, Kentucky, and West Virginia reported the lowest debt levels, with averages around $3,000 to $3,180.

Compounding the issue, over half of individuals carrying credit card debt are using it to cover essential living expenses such as food, housing, and utilities. This highlights a critical financial vulnerability for a significant portion of the population.

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The amounts vary considerably, but nowhere in the country did the average balance decrease during the year. This suggests that this is not just a local problem.