Grayson West
We gathered data from the Federal Reserve Bank of New York to bring you the 15 US states with the highest debt per capita (person). These states are struggling with severe debt problems and financial instability. In ascending order, let’s look at how much they owe while highlighting the causes of their financial challenges.
Idaho
Total Debt Balance Per Capita: $64,140
Now that Idaho owes $64,140 per person, 88.12% of the average household income in the state will be used to repay loans. In 2022 the overall state meal debt rose to about $2.36 million. Adding to the concern, between 2020 and 2021, the total consumer debt increased by $772 billion to hit $15.31 trillion, surpassing the 2.7% growth the previous year.
Connecticut
Total Debt Balance Per Capita: $64,670
The average Connecticut resident owes $64,670. but the state is only responsible for 16.83%. Its $63.6 billion debt is linked with unresolved issues such as unfunded pensions, high healthcare costs, and slow economic growth. Fortunately, its government has commenced plans to resolve most financial problems through thorough planning.
Arkansas
Total Debt Balance Per Capita: $65,600
Arkansas’ financial problems are caused by high education and healthcare costs, combined with pension obligations. Due to these unresolved issues, the average debt of a resident in Arkansas is $65,600, which is estimated to be 70.63% of their annual household earnings.
Nevada
Total Debt Balance Per Capita: $66,020
While Nevada is one of seven states with no income tax, its residents still grapple with unemployment and carry high debt balances compared to other states. The average household debt is $66,020, accounting for 91.27% of the annual earnings in the state.
New Jersey
Total Debt Balance Per Capita: $66,800
New Jersey has found itself in a tight spot financially due to a combination of pension shortfalls, high property taxes, and structural budget deficits. Residents owe $66,800, and their total government debt is $119.4 Billion, accounting for 13.17% of the state’s GDP.
Oregon
The Federal Reserve Bank ranks Oregon as having the tenth-highest household debt nationwide, with $66,950 being owed per person, amounting to 88.49% of the median income. Moreover, the total government debt is estimated at 14.59% of the state’s GDP.
Alabama
Total Debt Balance Per Capita: $66,950
By 2022, 10% of Alabama residents owed federal student loans, and $23.5 billion of these federal loan debts were accrued to the state. Alabama now has a total debt of $67,670 per capita, amounting to 7.47% of its average household income.
Virginia
Total Debt Balance Per Capita: $74,110
Like many others on this list, Virginia is rocking under the heavy weight of mortgage, student, and household debt, with the average resident owing $74,110. It is $45 million deep in debt, although much of it was due to internal improvements before West Virginia became a state.
Massachusetts
Total Debt Balance Per Capita: $74,260
The Beaver State has the seventh-highest debt per capita in the US, and its residents are burdened with $74,260 each on average. Massachusetts is grappling with these loans due to the high costs of education and healthcare, plus increasing pension responsibilities.
Utah
Total Debt Balance Per Capita: $79,240
According to financial planner Shane Stewart, cars and mortgages are the two most significant factors contributing to Utah’s enormous debt-to-income ratio. In 2022, the state accrued a total debt of $79,240 per resident.
Maryland
Total Debt Balance Per Capita: $80,130
Marylanders owe an average of $80,130 in student loans and have the second-highest student debt loads in the nation. The state’s generous financial aid has backfired, leaving it with nearly $20 billion in bonds and an estimated $30 billion in unfunded liabilities.
Washington
Total Debt Balance Per Capita: $82,300
In 2022, the total debt per capita in the state was $82,300, with the government also owing about 23% of its GDP. This situation could worsen as Washington is adopting an interest rate of around 4% to 5%, which is projected to push the debt well past 200% of GDP over time.
Hawaii
Total Debt Balance Per Capita: $82,650
Hawaii has a debt load that has become a considerable financial strain, constituting 89.39% of the median income of its residents. As the third-highest state with the most household debt per capita, the average person in Hawaii owes $82,650.
California
Total Debt Balance Per Capita: $84,730
Data gathered across all states places California as the second-highest in household debt per capita, with a staggering $84,730. These figures result from the high cost of living, extensive social programs, and mediocre financial management.
Colorado
Total Debt Balance Per Capita: $89,170
Colorado has the highest debt owed per person, equivalent to a whopping 99.85%, which is almost equal to their median income. Overtaking Hawaii, this state also ranks as the third most indebted government in the US. As a result, businesses and individuals are looking for relief programs to help them plan for a debt-free future.
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