The United States is a diverse country with different economic opportunities specific to each region. Some states have higher unemployment rates and fewer jobs. Others thrive with technology innovations and growing industries. Taking this into account, we included a state-by-state breakdown of consumer debt in our most recent poll.
Once again, the results were surprising. In New York, which has a per capita income of $67,844, 22% of the consumers we polled reported no debt. Ohio has a smaller per capita income of $56,111 (34th in the US). They came in at 27.77% with no household debt. This seems to be in alignment with our data about the relationship between income and debt.
Taking it one step further, Virginia, which is 11th in the country for per capita income at $72,577, reported just 9% of households with no debt. Virginia also has a lower unemployment rate (currently 4.5%) than the national average, had a 5.1% increase in home sales during 2021, and has a median home price of $345,592, up 8.3% from 2020.
One of the anomalies we found in this poll was the state of Texas. Just 8.3% of households polled in Texas reported no debt. Their per capita income of $60,629 is ranked 25th in the US, ten spots behind New York and nine ahead of Ohio. They were also one of the most impacted by 2020-2021 shutdowns, with nearly 300,000 people employed by oil and gas companies.
Common Debt Types by State
Having examined the relationship between income and debt, we delved a little deeper to analyze states with high debt and where that debt is coming from. New York came in at or near the top in all categories, including personal debt, credit card debt, mortgages, student loans, auto loans, and HELOCs. That was not an unexpected revelation.
Respondents in California, a state which ranks 7th in the country with a per capita income of $75,277, reported averages of 23.40% mortgage debt. Only Georgia (31.82%) came in higher. Massachusetts was a close third with 23.33% mortgage debt. Michigan (21.05%) and Ohio (19.60%) rounded out the top five in this category.
Ironically, of all the cities in the top five mortgage debt states we’ve listed, only Cleveland, Ohio shows up on a “best real estate markets” list. Average home sale prices in Cleveland are roughly $180,000 and home values have increased 5% from pre-pandemic levels. That, along with interest rates staying low, could potentially lead to an increase in mortgage debt this year.
Of all the types of debt surveyed, credit card debt represented the highest percentage. It’s over 25% of overall household debt in Illinois (30.76%), Pennsylvania (30%), Georgia (27.28%), and Michigan (26.32%). In Florida, New York, and Pennsylvania, credit card debt represents the highest percentage of overall household debt.
As for auto loans, Ohio (21.58%) and Michigan (21.05%) lead the pack by a significant margin. California is a distant third at 17.03%. Michigan and Ohio are the top two auto manufacturers in the United States. California has over 15 million registered automobiles.
Massachusetts (20%), New Jersey (20.5%), Ohio (17.64%), Florida (16.39%), and Virginia (15.09%) all rank high in student loan debt. Texas (12.12%) and California (10.63%), the two states with the highest number of colleges and universities, are both at the bottom of the scale. Only Georgia (9.09%) ranks lower in student loan debt.
Other types of debt we polled included business loans, home equity (HELOCs), and personal loans. Of these, the numbers that stood out were the percentage of business loans in Texas (15.15%) and Virginia (15.09%). The Texas number is expected, with cutbacks in oil and gas production forcing workers to seek new business opportunities.
Virginia is similar since 66.67% of its GDP comes from the service sector. Hotels, motels, inns, and tourist attractions were all shut down during the pandemic. Meanwhile, an advanced technological infrastructure provided many unemployed workers the ability to start online businesses. This may have contributed to an increase in business loans.
For a complete breakdown of states with high debt and the categories that debt falls in, review the table below. In the next section, we’ll look at total debt increases by state.
|
Mortgages |
Auto Loans |
Student Loans |
Credit Cards |
Business Loans |
Home Equity |
Personal Loans |
California |
23.40% |
17.03% |
10.63% |
23.40% |
8.52% |
10.63% |
6.39% |
Florida |
16.39% |
14.75% |
16.36% |
24.60% |
8.19% |
9.84% |
9.84% |
Georgia |
31.82% |
9.09% |
9.09% |
27.28% |
4.54% |
9.09% |
9.09% |
Illinois |
19.23% |
7.70% |
15.38% |
30.76% |
7.70% |
7.70% |
11.53% |
Massachusetts |
23.33% |
13.33% |
20.00% |
23.33% |
6.66% |
6.66% |
6.66% |
Michigan |
21.05% |
21.05% |
13.16% |
26.32% |
2.62% |
7.90% |
7.90% |
New Jersey |
17.95% |
10.26% |
20.50% |
23.07% |
7.70% |
10.26% |
10.26% |
New York |
14.46% |
15.06% |
11.44% |
22.29% |
12.05% |
10.84% |
13.85% |
Ohio |
19.60% |
21.58% |
17.64% |
21.58% |
3.92% |
5.88% |
9.80% |
Pennsylvania |
15.00% |
12.50% |
12.50% |
30.00% |
7.50% |
12.50% |
10.00% |
Texas |
18.18% |
15.15% |
12.12% |
18.18% |
15.15% |
5.90% |
15.15% |
Virginia |
16.98% |
15.09% |
15.09% |
16.98% |
15.09% |
11.32% |
9.45% |
Household Debt Increase by State in 2020-2021
With 57 million documented US cases of COVID-19 since 2020 and over 828,000 deaths, the impact of the pandemic on Americans was profound and lasting. The death number took its toll physically and emotionally, but the fallout went far beyond that. Economically, the country suffered through some of the darkest times in decades.
To complete our poll, we looked at the overall debt increase during the pandemic. Despite trying financial times and high unemployment numbers, only seven of the states we polled had participants with a debt increase of over 30%. New Jersey was the highest on that list with 13.33% of households polled showing up in the highest bracket.
On the opposite end of the scale, 59.09% of households polled in Florida reported no debt increase. Illinois and Georgia tied for second place, both with 50% reporting no debt increase. New Jersey was third with 40%. Debt increases of 10% to 30% were mixed, with only Massachusetts standing out in the “Up 10%” category with 53.33% reporting in that range.
To clarify, we’re talking about overall debt increase here. This could mean adding more credit card debt or taking out a mortgage. Debt can also increase when consumers buy a new car using an auto loan. We’ve already broken down these categories above – you’re welcome to review the earlier sections of this page if you need a refresher.
In April of 2020, the St. Louis Federal Reserve published an article on US household debt which showed an increase of $1.5 trillion in household debt between 2008 and the fourth quarter of 2019. According to the Fed, as of December 2019, total consumer debt was $14.15 trillion. Their study also showed that 70% of the total was mortgage debt.
According to newyorkfed.org, that debt increased from another $15 trillion in 2021. Analysis of the data shows that this was mainly due to an increase in mortgage debt, while credit card debt actually declined. The new mortgage debt can be attributed to lower interest rates, a direct response to the economic uncertainty of the pandemic.
|
No Increase |
Up to 10% |
11% to 20% |
21% to 30% |
Over 30% |
California |
25.00% |
25.00% |
25.00% |
18.75% |
6.25% |
Florida |
59.09% |
9.09% |
22.73% |
9.09% |
|
Georgia |
50.00% |
30.00% |
10.00% |
10.00% |
|
Illinois |
50.00% |
20.00% |
10.00% |
20.00% |
|
Massachusetts |
40.00% |
10.00% |
10.00% |
30.00% |
10.00% |
Michigan |
20.00% |
53.33% |
26.66% |
|
|
New Jersey |
40.00% |
20.00% |
13.33% |
13.33% |
13.33% |
New York |
25.42% |
33.90% |
18.64% |
18.64% |
3.40% |
Ohio |
33.33% |
33.33% |
16.66% |
5.55% |
11.11% |
Pennsylvania |
23.08% |
46.15% |
23.07% |
|
7.70% |
Texas |
25.00% |
25.00% |
25.00% |
25.00% |
|
Virginia |
|
18.18% |
18.18% |
54.54% |
9.10% |