Debt Overload: The 15 States Facing the Most Financial Strain

2024-08-21

Are you struggling with debt? Is your state one of the hardest hit? Here are 15 states where people are dealing with the highest levels of debt, making it tough to stay afloat.

15. Illinois

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Illinois residents face a debt-to-income ratio of 1.63. High taxes, housing costs, and living expenses contribute to the state’s significant debt levels. On average, households owe $52,000 in debt, which is hard to manage with median incomes stagnating.

14. New Jersey

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New Jersey’s debt-to-income ratio is 1.65. High property taxes and living costs make it difficult for residents to stay out of debt. The average household debt is around $58,000, making it a financial struggle for many families.

13. Massachusetts

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Massachusetts has a debt-to-income ratio of 1.67. High housing costs, especially in the Boston area, and expensive healthcare services strain household budgets. The average household debt is $61,000, causing significant financial stress.

12. Virginia

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Virginia residents face a debt-to-income ratio of 1.68. The high cost of living in Northern Virginia, driven by its proximity to Washington, D.C., is a major factor. Average household debt stands at $55,000, putting a strain on many families.

11. Maryland

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Maryland has a debt-to-income ratio of 1.70. High costs of living, particularly in the Baltimore and Washington, D.C. areas, contribute to the state’s financial stress. Households average about $57,000 in debt, making it difficult to keep up with expenses.

10. Oregon

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Oregon’s debt-to-income ratio is 1.72. Rising housing costs and living expenses in cities like Portland make it hard for residents to manage their debt. The average household debt is $54,000, with many struggling to make ends meet.

9. Washington

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Washington state has a debt-to-income ratio of 1.73. High housing prices, especially in Seattle, and rising living costs contribute to the state’s debt challenges. Households are dealing with an average debt of $60,000, making financial stability a distant dream.

8. Florida

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Florida residents face a debt-to-income ratio of 1.74. High housing costs and hurricane-related expenses add to the financial burden on families. The average household debt is around $53,000, leaving many struggling to stay afloat.

7. Texas

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Texas has a debt-to-income ratio of 1.75. The state’s rapid growth has led to rising housing and living costs, making debt a significant issue for many households. On average, residents owe $56,000 in debt, causing widespread financial strain.

6. California

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California, with a debt-to-income ratio of 1.76, faces high costs in housing, healthcare, and everyday expenses. Residents in cities like San Francisco and Los Angeles are particularly affected, with the average household debt at $68,000.

5. Nevada

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Nevada’s debt-to-income ratio is 1.84. High housing costs and living expenses in cities like Las Vegas are major contributors to the state’s financial woes. Households are dealing with an average debt of $59,000, making it hard to manage finances.

4. Colorado

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With a debt-to-income ratio of 1.84, Colorado is struggling with high housing costs and living expenses. The booming economy has driven up prices, making it hard for residents to keep up. The average household debt is $63,000.

3. Arizona

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Arizona residents face a debt-to-income ratio of 1.84. The cost of living, especially housing and healthcare, has risen sharply, putting a strain on household budgets. On average, households owe $61,000 in debt.

2. Idaho

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Idaho has a debt-to-income ratio of 2.06, largely due to rising housing costs. The influx of new residents has driven up home prices, leaving many locals financially overextended. Households average $62,000 in debt, making financial stability elusive.

1. Hawaii

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Hawaii has the highest debt-to-income ratio in the nation at 2.06. The high cost of living, including expensive housing and utilities, makes it difficult for residents to manage their finances. Many people are struggling with an average household debt of $75,000, making it the most indebted state in the country.

Feeling the Squeeze?

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Is your state on this list? High debt levels can make everyday life stressful and challenging. It’s important to stay informed and seek out resources that can help manage and reduce debt. The financial outlook is grim, but knowing where you stand is the first step towards finding a solution.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.

For transparency, this content was partly developed with AI assistance and carefully curated by an experienced editor to be informative and ensure accuracy.

The images used are for illustrative purposes only and may not represent the actual people or places mentioned in the article.