Quantcast

Iowa Is America’s Most Debt-Free State For Credit Cards [Top 10]

Iowa is America’s most debt-free credit card state thanks to residents who keep their card balances low and spend less on their Visa, Mastercard, and other pieces of plastic.

Data from Experian-Oliver Wyman Market Intelligence Reports and Experian’s IntelliView tool shows that Iowans carry the lowest credit card balance per consumer in the US. According to the report residents in Iowa carry just $2,904 in credit card debt as of the second quarter of 2013.

Iowa is closely followed by North Dakota where residents hold an average of $2,971 in credit card debit. Utah edges just over the $3K mark at $3,014 and South Dakota follows behind with $3,168. Rounding out the top five US States for lowest credit card debt is Idaho at $3,326.

ABC News notes that several of the states with the lowest credit card debt were also featured in Credit.com’s analysis for states that would lead the housing recovery. Those states tend to feature higher credit scores and a low number of severely delinquent mortgages and foreclosure inventory.

Listed towards the bottom of the list are Alaska ($4,706), Connecticut ($4,420), Maryland ($4,311), and Delaware where credit card debt averages $4,296.

Debt in America has become a major issue and a recent study found that the new “American dream” is simply to become debt free.

Here is a quick look at the Top 10 lowest credit card debt states:

10. Kentucky ($3,424)

9. West Virginia ($3,411)

8. Montana ($3,408)

7. Nebraska ($3,326)

6. Idaho ($3,225)

5. Wisconsin ($3,204)

4. South Dakota ($3,168)

3. Utah ($3,014)

2. North Dakota ($2,971)

1. Iowa ($2,904)

Customers in many areas are unable to take out second mortgages and home refinance loans to pay down credit card debt. That lack of financing issues may in-part explain higher credit card debt. Customers also rely on credit card spending for home repairs and other expenses that may have been rolled into their home financing posts in the past.