Credit card debt continues to climb across the U.S., but some states are carrying significantly heavier balances than others. You may be asking: Which states have the highest average credit card debt in America?
As of 2025, the states with the highest average credit card debt are New Jersey ($9,382), Maryland ($9,252), Connecticut ($9,201), Massachusetts ($9,165), and California ($9,096).
With decades of experience helping clients manage and resolve credit card debt, I’ve seen how regional economic factors, income levels, and cost of living influence borrowing habits. Let’s explore why these states top the list and what it means for residents trying to regain financial control.
National Overview of Credit Card Debt Trends
Credit card debt has hit an all-time high in the United States. According to the Federal Reserve’s Consumer Credit Report (April 2025), revolving credit balances surpassed $1.13 trillion, a 4.7% increase compared to 2024.
Several key trends are driving this rise:
- Persistent Inflation: Even with slowing rates, the cumulative effect of 2022–2024 inflation continues to push Americans toward credit reliance.
- Higher Interest Rates: The national average credit card APR reached 22.7% in 2025, the highest level on record.
- Stagnant Wage Growth: While inflation cooled, many industries saw only modest wage increases, leading to greater financial strain.
- Essential Spending on Credit: More consumers are using credit cards for necessities like groceries, healthcare, and housing-related costs.
Key National Credit Card Debt Statistics (2025):
| Metric | Value |
|---|---|
| Average Household Credit Card Debt | $7,920 |
| Median Household Credit Card Debt | $5,435 |
| Average Credit Card APR | 22.7% |
| % of Consumers Carrying a Balance | 52% |
| % of Balances 90+ Days Delinquent | 3.8% |
Table Description: National 2025 credit card debt statistics including average debt, APR, and delinquency rates.
Credit card debt trends in 2025show that reliance on revolving credit is becoming entrenched, with serious implications for financial security across income brackets.
What is the Average Credit Card Debt in 2025?
In 2025, the average American carries approximately $7,920 in credit card debt, with state-by-state averages ranging from $5,870 to $10,130.
State-by-State Breakdown of Average Credit Card Debt (2025)
Understanding how credit card debt varies by location reveals important insights into American consumer behavior and financial health. Below, we present a full breakdown of average credit card debt by state in 2025, ranked from highest to lowest.
This table also includes each state’s median household income and the debt-to-income (DTI) ratio, offering a clearer picture of where debt burdens are most and least severe relative to earnings.
Higher DTI percentages suggest greater financial strain, while lower percentages indicate healthier borrowing patterns.
| State | Average Credit Card Debt ($) | Median Household Income ($) | Debt-to-Income Ratio (%) |
|---|---|---|---|
| Alaska | 10,130 | 81,000 | 12.51% |
| New Jersey | 9,700 | 89,000 | 10.90% |
| Connecticut | 9,580 | 88,000 | 10.89% |
| Maryland | 9,250 | 87,000 | 10.63% |
| Virginia | 9,020 | 86,000 | 10.49% |
| Texas | 8,650 | 75,000 | 11.53% |
| Florida | 8,500 | 71,000 | 11.97% |
| California | 8,400 | 82,000 | 10.24% |
| Illinois | 8,150 | 78,000 | 10.45% |
| Georgia | 8,050 | 74,000 | 10.88% |
| New York | 8,000 | 83,000 | 9.64% |
| Nevada | 7,850 | 73,000 | 10.75% |
| Washington | 7,800 | 85,000 | 9.18% |
| Colorado | 7,650 | 84,000 | 9.11% |
| Massachusetts | 7,600 | 90,000 | 8.44% |
| Arizona | 7,580 | 72,000 | 10.53% |
| Oklahoma | 7,450 | 65,000 | 11.46% |
Key Observations:
- States with higher housing costs, like California and New Jersey, also report higher average credit card debts.
- Southern states, such as Mississippi and Alabama, show lower average balances but face higher delinquency rates.
Credit card debt by state 2025 highlights how regional economic pressures shape borrowing behavior and default risks.
Age and Income Group Analysis
Credit card debt burdens shift significantly across age groups and income levels.
| Age Group | Average Credit Card Debt (2025) |
|---|---|
| 18–24 | $2,890 |
| 25–34 | $5,850 |
| 35–44 | $8,640 |
| 45–54 | $9,070 |
| 55–64 | $8,520 |
| 65+ | $6,120 |
Analysis by Age Group:
- Millennials (25–44) carry rapidly increasing balances, driven by housing, childcare, and student loan burdens.
- Older Americans (45–64) often support adult children or aging parents, leading to persistent debt accumulation.
- Gen Z (18–24) uses credit to cover basic expenses, risking early financial instability.
Analysis by Income Level:
- Households earning under $50,000 annually are 60% more likely to carry month-to-month balances.
- Households earning over $150,000 report higher absolute debt balances, but lower relative credit utilization.
How Debt Levels Impact Bankruptcy Risk
As credit card debt in America levels rise, so does bankruptcy risk, especially among middle-class families squeezed by stagnant incomes and rising expenses.
Key Credit Card Debt and Bankruptcy Connections (2025):
- 41% of Chapter 7 bankruptcy filers cite unsecured debt (primarily credit cards) as a major cause (American Bankruptcy Institute).
- Consumers whose minimum monthly payments exceed 10% of gross income are four times more likely to file for bankruptcy.
- States with higher credit card debt per capita (e.g., Alaska, Maryland) report proportionally higher bankruptcy filings.
Credit Card Debt and Bankruptcy Risk Chart:
| Year | Avg. Credit Card Debt | Bankruptcy Filings (Consumer) |
|---|---|---|
| 2020 | $6,200 | 493,000 |
| 2021 | $6,790 | 397,000 |
| 2022 | $7,100 | 384,000 |
| 2023 | $7,350 | 390,000 |
| 2024 | $7,670 | 415,000 |
| 2025 | $7,920 | 430,000 (est.) |
How Rising Credit Card Debt Correlates with Bankruptcy Risk
While credit card debt has steadily climbed year over year, consumer bankruptcy filings have followed a more complex trajectory. The chart below compares average U.S. credit card debt from 2020 to 2025 with the number of annual consumer bankruptcy filings.
This visual highlights how rising debt burdens may not immediately lead to increased bankruptcies—but can build financial pressure that ultimately drives more households toward legal debt relief options in future years.
National credit card debt statistics clearly demonstrate a direct relationship between rising unsecured debt and financial collapse risk.
Tips for Managing Rising Credit Card Debt in America
With the right strategy, it is possible to reduce and eventually eliminate overwhelming credit card debt in America.
Here’s how to tackle it effectively:
- Create a realistic budget that prioritizes debt repayment.
- Use the avalanche method to pay off high-interest cards first.
- Request lower APRs from your credit card companies.
- Apply for balance transfer offers strategically, if you can qualify.
- Consolidate debts through a reputable debt management program.
- Consider debt settlement if balances are beyond what you can feasibly repay.
- Monitor your credit utilization rate, keeping it under 30% for optimal credit health.
Pro Tip:
Credit counseling and professional debt settlement help are not just for crisis situations — they can speed up your financial recovery by years.
At DebtBusters, we specialize in affordable, proven strategies to eliminate credit card debt and help you rebuild your financial future faster.
Get Expert Help to Eliminate Your Credit Card Debt in America
Struggling under the weight of credit card balances? You don’t have to face it alone.
At DebtBusters, we specialize in helping people just like you reduce their debt, lower their monthly payments, and finally break free from financial stress.
Our proven debt relief strategies can help you:
- Settle your credit card debt for less than you owe
- Stop the constant cycle of high-interest payments
- Protect your credit from further damage
- Rebuild your financial future faster than you thought possible
Your journey to freedom starts with a simple phone call.
Call (866) 223-4395 today for your free, no-obligation consultation, or visit DebtBusters.com.
You deserve a fresh start — and DebtBusters is ready to help you take it.
Frequently Asked Questions
What is the average credit card debt in 2025?
The average credit card debt for U.S. households in 2025 is approximately $7,920.
This reflects a 4.7% increase from 2024 levels, according to the Federal Reserve.
Which state has the highest credit card debt?
Alaska leads with the highest average credit card debt at $10,130.
High living costs and limited access to low-interest lending options contribute to this figure.
Is credit card debt increasing or decreasing?
Credit card debt is increasing nationally in 2025.
Economic pressures and higher consumer reliance on revolving credit are key drivers.
What’s a healthy credit utilization rate?
A healthy credit utilization rate is under 30%.
Lower utilization improves your credit score and reduces financial stress.
