Massachusetts Ranks No. 21 In U.S. For Credit Card Debt: Report

ACROSS MASSACHUSSETTS — Overall credit card debt among Massachusetts residents is neither high nor low — just average according to a new WalletHub report.

The state ranks No. 21 overall in the country for credit card debt, with the average balance $1,928.

According to the report, the expected timeframe to pay off the average card balance in Massachusetts is 11 months and 28 days and costs $156 in interest.

The top five states with the lowest credit card debt are South Dakota (No. 1), Mississippi (No. 2), Alabama (No. 3), Hawaii (No. 4) and New York (No. 5).

Those with the highest credit card debt are Alaska (No. 1), Montana (No. 2), District of Columbia (No. 3), Colorado (No. 4) and Vermont (No. 5).

To determine which states have the least and most sustainable credit card debts, WalletHub used TransUnion credit data, the Federal Reserve, the U.S. Census Bureau and WalletHub’s proprietary credit card payoff calculator to calculate the cost and time required to pay off the median card balances of each of the 50 states and the District of Columbia.

At the beginning of 2021, Americans owed nearly $900 billion in credit-card debt. This is a bit less than in 2020, thanks to record paydowns due to the stimulus checks during COVID-19 pandemic. WalletHub, however, projects that net credit card debt will increase by $60 billion in 2021.

"Awareness of one’s financial situation is important. These days many apps help consumers get a good picture of their finances, help them plan, and also help them utilize saving opportunities," said Anand Goel, associate professor at Stevens Institute of Technology. "Financially responsible behavior does not mean giving up all discretionary spending, just prioritizing how you allocate your money to different expenses and saving accounts.”

To read the full WalletHub report, click here.