State by State: Where Americans Are Best and Worst at Managing Debt

US map with Ben Franklin printed on it.esfera /

Guess what: Borrowers in poorer states sometimes do better at managing debt than those who live in more affluent areas. That’s according to a from that analyzed data from 540,000 borrowers.

The site weighed figures for student and consumer debt housing expenses against average monthly incomes. The study found that on average, Americans spend $207 a month on credit card payments, $370 on student loan payments, and $906 on housing, while earning an average of $60,671 per year.

But the state-by-state breakdown reveal that higher salaries don’t necessarily equate to good debt handling, and a smaller paychecks don’t automatically suggest poor debt handling.

Credible calculated a “monthly debt-to-income ratio” for each state, and from that created a ranking. The top spot (with the lowest monthly debt-to-income ratio) might surprise you. Read on to find out what it is, and where your state ranks.

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