Americans living in the State of Alaska have consistently been burdened with credit card balances well over $2,000 per card. The average debt here stands at around $2,300 – and this compares with the rest of the United States which has credit card debt averaging from $1,300 per card to around $1,800.
There are a number of reasons why Alaskans tend to build up a bigger credit card debt than other states, but the high cost of living out in Alaska (not to mention the astronomical heating bills in winter) has to be a big reason why the credit card debt of the average Alaskan is substantially higher than those living in the rest of the U.S.
But Alaskans have at least followed a national trend in reducing the figure year on year. In the second quarter of 2012 for example, the average credit card debt in Alaska was $2,320 and the following year (Q2 in 2013) is was up further to a figure of $2,354 but then in Q2 2014, it dropped to its latest average debt figure of $2,299 – a drop of $55 of debt on each card in just one year.
The data was compiled by the Missouri Economic Research and Information Centre, where it ranked cost of living by state as of the second quarter of 2014 (the same quarter used to verify the Experian data).
Alaska is an expensive state to live in, but it’s not the most expensive state – in fact it comes in at fourth place in the USA as “Top 10 Most Expensive States to Live In.”
Hawaii and Connecticut are much more expensive states to live in than Alaska, but for some less than obvious reasons you won’t find the credit card debt in these states even getting into the top 10 of credit card debt by state. You will find that the District of Columbia does have high credit card and tends to be very much like Alaska, in that the residents live in an expensive state and have high credit card debt as well.
Every time a person uses a credit card and fails to pay off the monthly minimum, it goes on to affect the credit score of that debtor. Alaskans have an average credit card limit of $8,500 per card – and the lower the balance, the better it reflects on one’s credit score.
So keep on top of your balances and credit lines. Pay on time and above the minimum.