The States With the Most Personal Debt in 2024

Fertnig / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Every state is known for something wonderful. In Maryland, you can sample crabs galore after exploring some unique museums. Head further south to Florida, and you can take the family to Disney World or the Everglades National Park. Jet across the country to California and take in Hollywood history, not to mention some amazing beaches.

However, sometimes a state can also have more unfortunate claims to fame — like debt. A series of studies and articles have highlighted the states with broader numbers of residents who are carrying some form of debt.

GOBankingRates investigated some of this reporting to determine the states where residents carry some of the highest amounts of personal debt. 

Credit Card Debt 

Forbes Advisor led its reporting about the states with the highest credit card debt with the staggering statistic that in the last quarter of 2023, credit card balances increased by a whopping $50 billion to $1.13 trillion — and that the debt seems like it’ll keep accumulating. 

When determining the states where residents struggle the most with credit card debt, the publication said it analyzed data on credit card debt and delinquency rates (defined as the percentage of balances that are at least 90 days late) from the Federal Reserve Bank of New York for all 50 states and Washington, D.C.

The publication’s research showed that Florida topped the list with the dubious distinction of being the state where people hold the most credit card debt. But it was far from the only state where residents contended with credit card debt. According to Forbes Advisor, the list breaks down as follows: 

• Florida
• Louisiana
• Texas
• Nevada
• Georgia

Student Debt 

Student debt is one of the most common forms of personal debt across the country, with the Federal Reserve sharing that total outstanding loans have exceeded $1.7 trillion. Newsweek reported that this debt burden impacts over 44 million Americans, often placing limitations on their ability to reach key milestones like owning a home or saving for retirement.

Taking a look at where some of the worst student loan debt is consolidated, Newsweek shared research from WalletHub about the states with the most severe student loan debt in the country. Here are the top five:

• Mississippi
• New Hampshire
• Pennsylvania
• Delaware
• South Dakota 

Bankruptcies 

Filing for bankruptcy can happen for a number of reasons, sometimes well beyond an individual’s control. Anything from a sudden job loss to an illness or accident can cause a person to need bankruptcy protections because of their debts. Unfortunately, having a bankruptcy on your record can impact your financial health for a long time.

Forbes Advisor investigated the states with the highest rates of bankruptcies, looking into both personal bankruptcies, as well as bankruptcies filed on behalf of businesses. Here are the top five, with Mississippi topping another debt list:

• Mississippi
• Tennessee
• Nevada
• Georgia
• Illinois 

It’s important to remember that while filing for bankruptcy is an undeniable financial setback, it’s not an insurmountable one. There are resources available to help people bounce back. Regardless of where you live within the country, there is always hope for successfully dealing with your debt.

Share This Article: