New Jersey Residents Are Beating Holiday Debt Better Than Most Of America

Holiday shopping season is officially underway, but a new CardRates study shows many Americans are still dealing with the fallout from last year’s spending. Nationally, 26 percent of people have not yet paid off their 2024 holiday credit card balances. The state by state breakdown reveals some big differences in how fast people dig themselves out, and New Jersey stands out in a very good way.

CardRates identified the states most likely to still be carrying last year’s holiday debt, and the results paint a clear picture of where seasonal spending hits hardest:

1. Arkansas — 35 percent
2. Indiana — 34 percent
3. Washington — 33 percent
4. Louisiana — 32 percent
5. Indiana — 34 percent
6. Washington — 33 percent
7. Louisiana — 32 percent
8. Maryland — 32 percent
9. North Carolina — 32 percent
10. Virginia — 32 percent
11. Georgia — 31 percent
12. New York — 30 percent
13. Texas — 30 percent

On the other end of the spectrum are the states least likely to still have lingering holiday balances:

1. Michigan — 16 percent
2. New Jersey — 17 percent
3. Arizona — 20 percent
4. Nebraska — 20 percent
5. Pennsylvania — 20 percent
6. Colorado — 21 percent
7. South Carolina — 21 percent
8. California —24 percent
9. Massachusetts — 24 percent
10. Minnesota — 24 percent

That puts New Jersey near the very top for responsible pay down behavior, far ahead of the national average.

This story hits home for me. After college, I walked into adulthood with a pile of debt that clung to me the same way a girl I dated back then did. No matter how many times I thought it was over, there it was again. Debt behaves the same way until you finally take control and push it out of your life. So seeing New Jersey residents crush their balances feels genuinely encouraging.

With holiday spending already ramping up, the Garden State is heading into the season on stronger financial footing than much of the country.