Map Shows Region With the Most Credit Card Debt
As inflation and high interest rates squeeze household budgets, credit card debt weighs heavily on millions of Americans—but not equally across the country. A new survey by Talker Research for Newsweek has revealed that Americans in the northeast are most likely to carry credit card debt, with 75 percent reporting balances on their cards. In contrast, the southeast had the lowest percentage of credit card debt at just 63 percent. The data highlights a troubling financial reality: while credit cards offer flexibility, they also carry some of the highest interest rates. That can turn a temporary shortfall into a long-term burden, especially in regions where other forms of debt—like mortgages, auto loans, and medical bills—are also widespread. "Credit card debt can become a financial trap for many households, especially when interest rates are high and minimum payments barely cover the interest," Consumer Finance Expert at CardRates.com Erica Sandberg told Newsweek. "Once people fall behind, it's incredibly difficult to catch up." The survey, conducted nationwide, asked 1,000 employed U.S. adults about the types of debt they hold and how much they owe. After credit cards, mortgages were the next most common form of debt, affecting 35 percent of respondents. The Midwest had the highest rate of mortgage debt (41 percent), while the Southwest had the highest percentage of people relying on personal loans (33 percent)—a possible sign that traditional financing isn't accessible for many in that region. While credit cards may be the most common type of debt, the amount Americans owe varies widely. According to the survey, the West has the highest average personal debt at $68,846.50, while the Southeast has the lowest at $46,591.30. This disparity suggests that while fewer people in the Southeast report carrying credit card balances, they may also have less total debt overall. As credit card balances remain high, financial experts warn that even small changes in interest rates can have a huge effect on consumers. "The credit lines may start small, but they can become quite large, often well over $10,000. That means a cardholder who carries over a balance can get deep into debt very quickly," Sandberg said.
