A report released this week by CreditCards.com revealed that an American household would need about 13 months to pay off the average credit card debt of $8,195.
One key finding: After New Mexico, the 10 states with the highest credit card debt burdens due to low income are all in the South: Louisiana, West Virginia, Alabama, Arkansas, Mississippi, Georgia, Oklahoma, Florida, South Carolina and Tennessee.
- Residents in the these states, including New Mexico, would take 15–17 months to pay off their balances. Although Alaska residents owe the most, they're more likely to pay off their balances faster than those in New Mexico because their household incomes are higher.
Methodology: The analysis used average credit card balances for each state, and estimated using 15% of median household income each month for repayment.