Entering 2023, Here Are the States With the Most Debt Per Person

Amid a year of high inflation and rising interest rates, consumers continued taking on debt in 2022. In fact, household debt rose to $16.51 trillion in the third quarter of 2022, according to the Federal Reserve Bank of New York, an 8.3% increase (led by mortgages) from the same quarter a year before. While that may sound alarming, LendingTree chief credit analyst Matt Schulz says it’s not necessarily bad.

“There’s no question that many people are taking on more debt because they have to, but growing debt isn’t always a sign of struggle,” he says. “It can be a sign of confidence. Continued wage growth and low unemployment may embolden people to feel confident about their financial situation. That confidence could lead people to borrow a bit more to do things like remodel their home, start a small business and travel.”

This study looks at where non-mortgage debt (meaning auto loans, credit cards, student loans, personal loans and other debt excluding mortgages) was highest entering 2023 — and where it was lowest. Stick around to see which states have the most (and least) mortgage debt.

Key findings

• Georgia residents entered 2023 with the highest average non-mortgage debt. Residents owed an average of $45,778 in December 2022, ahead of Maryland ($45,663) and Texas ($44,850). Meanwhile, Minnesota residents entered the new year with the lowest average non-mortgage debt ($35,201), below Oregon ($35,249) and Indiana ($36,001).
• Average non-mortgage debt jumped the most between the start of 2022 and 2023 in North Dakota. Residents’ average non-mortgage debt jumped by $6,719 between December 2021 and December 2022, ahead of New Hampshire ($6,242) and Utah ($5,796). In the same period, it decreased the most in Illinois ($2,045), South Dakota ($1,139) and Mississippi ($906).
• California residents entered 2023 with the highest average mortgage debt. Residents owed an average of $161,562 in December 2022, ahead of Washington ($154,333) and Hawaii ($145,833). Meanwhile, Mississippi residents entered the new year with the lowest mortgage debt ($50,664), below West Virginia ($51,024) and Arkansas ($56,992).
• Average mortgage debt jumped the most between the start of 2022 and 2023 in Rhode Island. Residents’ average mortgage debt jumped by $15,896 between December 2021 and December 2022, ahead of Vermont ($12,157) and South Dakota ($11,979). In the same period, it decreased the most in New York ($18,312), California ($16,880) and Wyoming ($16,784).

Which states entered 2023 with the highest average non-mortgage debt?

Georgia residents had the highest average non-mortgage debt in December 2022, entering the new year owing $45,778. The median household income in the state ($65,030) is nearly $4,000 lower than the national median ($69,021).

Residents of the Peach State also have lower average VantageScore credit scores than consumers across the U.S. — 676 versus 696 as of November 2022. And the state’s residents have the third-highest average student loan debt per person.

Auto loans could also play a role. In a separate October 2022 LendingTree study on where millennials owe the most on their cars, Georgia’s two biggest metros — Atlanta and Augusta — ranked in the top third.

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

Following Georgia, Maryland ($45,663) had the next highest average non-mortgage debt. While Maryland’s median household income is significant at $91,431, the average VantageScore at 700 for the state is just a few points above the national average of 696.

A higher cost of living in Maryland may contribute to higher levels of non-mortgage debt. Maryland’s cost of living is 24% more than the national average — making it the seventh most expensive state. And residents here owe more in federal and private student loan debt per person than anywhere except the neighboring District of Columbia.

Texas ranked third, with residents owing an average of $44,850 in non-mortgage debt. Like Georgia, residents in Texas have lower median household incomes ($67,321) than the average across the U.S. Millennials in Maryland and Texas also have high amounts of auto loan debt:

• Baltimore — the largest metro in Maryland — ranked in the top third of metros where millennials owe the most on their cars
• Texas dominated half of the top 10 list, including claiming the top two spots

On the other end of the list, Minnesota had the lowest average non-mortgage debt at $35,201. That’s followed by Oregon ($35,249) and Indiana ($36,001).

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

Median household incomes tend to be higher for the states with the lowest average non-mortgage debt. Among the bottom three, Minnesota ($77,706) and Oregon ($70,084) top the national average. Indiana is an exception at $61,944, lower than the U.S. average of $69,021.

Residents in all three states have solid average VantageScores (as of November 2022):

• Minnesota: 725
• Oregon: 714
• Indiana: 692 (just 4 points below the national average of 696)

Full rankings: States with the most non-mortgage debt

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

Average non-mortgage debt jumped the most in these states

Between December 2021 and December 2022 — or the start of 2022 and 2023 — the average non-mortgage debt in North Dakota jumped by $6,719, the most across the U.S.

The oil boom may be partially responsible for the jump in non-mortgage debt here, particularly because North Dakota is the third-largest U.S. oil producer. Crude oil prices rose throughout 2022 due to increased demand and international conflicts, and oil production in North Dakota subsequently rose. That economic boost may have led to increased spending for residents in North Dakota, meaning a likely bump in credit card usage.

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

Following North Dakota, New Hampshire ($6,242) and Utah ($5,796) ranked highest. Both states likely have seen a large increase in consumer spending. In New Hampshire, for instance, the median household income is $83,499 — well above the median across the U.S. That, combined with rising consumer prices, likely means residents are spending more money than before.

In the same vein, Utah has seen a lot of economic growth since 2020 — it was one of the first states to release a comprehensive economic recovery plan in response to the COVID-19 pandemic. According to a September 2022 MagnifyMoney study, Ogden and Provo, Utah, have the smallest and third-smallest income gaps between median earners and the top 5% of earners, which could promote heavier consumer spending across the board.

Meanwhile, average non-mortgage debt decreased by $2,045 in Illinois — ranking it lowest of any state. That comes after Illinois passed new debt relief legislation in early 2022, paying off $4.1 billion in state debt. For residents, the new legislation slashed hundreds of millions of dollars in interest payments passed on to workers through state taxes.

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

Following Illinois, South Dakota saw the second-highest decrease in non-mortgage debt, with residents carrying an average of $1,139 less debt than they did in 2021. Mississippi ranked third — the average non-mortgage debt here fell by $906 between the start of 2022 and 2023.

Full rankings: Where non-mortgage debt jumped the most

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

California claims the No. 1 spot with the highest average mortgage debt

California residents owed an average of $161,562 in mortgage debt in December 2022 — the highest across the U.S. That’s relatively unsurprising, given the housing costs in the state’s largest cities. In fact, California metros took all three of the top positions in a June 2022 LendingTree study on metros with the largest share of million-dollar homes.

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

Following California, Washington ($154,333) and Hawaii ($145,833) ranked highest. Like California, mortgage costs in Washington and Hawaii are higher than average. While the U.S. Census Bureau American Community Survey found that the average monthly cost for housing units with a mortgage is $1,672, that figure is far higher for the top three states here. Here’s a breakdown:

• California: $2,523 a month
• Washington: $2,110 a month
• Hawaii: $2,584 a month

On the other hand, Mississippi residents entered the new year with the lowest mortgage debt. Residents owed an average of $50,664 — 69% lower than the average mortgage debt in California. That’s followed by West Virginia ($51,024) and Arkansas ($56,992).

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

Unlike the states with the highest average mortgage debt, those with the lowest report below-average monthly costs for houses with a mortgage. Here’s a breakdown:

• Mississippi: $1,200 a month
• West Virginia: $1,071 a month
• Arkansas: $1,147 a month

Full rankings: States with the most mortgage debt

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

Average mortgage debt jumped the most in Rhode Island

Where has average mortgage debt jumped the most? According to our data, Rhode Island. Between 2022 and 2023, Rhode Island residents’ average mortgage debt jumped by $15,896. That’s followed by Vermont ($12,157) and South Dakota ($11,979).

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

LendingTree senior economist Jacob Channel says there’s no one reason why mortgage debt increased so much in these states. Instead, he says a few factors are at play, including:

• What an area’s housing supply looks like
• How attractive an area is to homebuyers
• How motivated buyers and sellers are to make concessions to one another

In the same period, mortgage debt decreased the most in New York ($18,312). That’s followed by California ($16,880) and Wyoming ($16,784).

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

This comes as two of the top states — New York and California — have seen a decline in population in recent years, with New York losing the most residents of any state between 2021 and 2022.

Rising housing costs are likely to blame for the decrease in both states, pushing residents to cheaper areas. That’s particularly true for residents moving from larger cities, as the growing number of work-from-home opportunities allows many more consumers to move than before.

Full rankings: Where mortgage debt jumped the most

Source: Analysis of more than 370,000 LendingTree users’ anonymized credit reports.

Expert tips for paying off debt

Debt can often feel insurmountable — particularly in today’s economy. However, paying off your debt is entirely possible, so long as you explore your options. Particularly, Schulz recommends the following strategies:

• Look for a 0% balance transfer credit card. “There are few better weapons in the fight against credit card debt than these cards,” he says. “You’ll have to have good credit to get one, and there are fees, limits and deadlines that you’ll need to know, but — used wisely — the right balance transfer credit card can be a game changer.”
• Consider a debt consolidation loan. These can be great tools for those struggling with debt. Although they do come with interest — unlike 0% balance transfer cards — you may still find loans with lower rates than your current credit cards.
• Review your budget. “If you haven’t looked at your budget in the last six months or so, there’s a good chance that a lot of the assumptions you made about expenses are now outdated, thanks to inflation,” he says. “That means that you may not be getting an accurate view of how much money is going out of your household each month, and because of that, you may need to shift some money around to focus on key priorities like paying down your debt.”

Methodology

Researchers analyzed the anonymized credit reports of more than 370,000 LendingTree users in December 2021 and December 2022.

In both periods, we analyzed consumers’ total non-mortgage and mortgage debt. Non-mortgage debt includes credit card debt, auto loans, personal loans, student loans and other forms of consumer debts.

We interchangeably refer to data from December 2021 and December 2022 as being from the start of 2022 and 2023.