According to a recent report by Yahoo Finance, Utah has been ranked as the best US state for managing credit card debt. The study found that Utah has the lowest percentage of credit card debt balances that were delinquent for more than 90 days, at 6.37%. This indicates that residents of Utah are effectively managing their credit card debt and staying on top of their payments. On average, an American holds three credit cards, and there are close to one billion credit cards being used in the United States. However, New Jersey has the highest average number of credit cards in the country, at 4.5 per person.
The report also highlights that credit card debt in the United States has exceeded $1 trillion as of Q2 2023. New Jersey, despite having the highest average number of credit cards, also has the highest credit card debt balance per capita, at $4,750. This suggests that residents of New Jersey may be struggling more with managing their credit card debt compared to other states.
Despite these statistics, Utah has managed to maintain its position as the best state for managing credit card debt. The state's economy, which is powered by tourism and mining, is worth $272 billion in nominal terms. Utah's success in managing credit card debt is particularly impressive considering that it has the 7th highest total household debt balance per capita, at $82,240 in Q4 2023. This indicates that Utah residents are finding effective strategies to manage their overall debt, including credit card debt.
Overall, the report highlights the importance of effective credit card debt management and the significant impact it can have on individuals and states. Utah's success in this area serves as an example for other states and individuals looking to improve their financial well-being and reduce their debt burden.