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Most adults understand it is a bad idea to take on too much debt, if it can be avoided. Credit card debt, in particular, can become problematic. But the key is whether it CAN be avoided for those who are struggling financially. A new report by WalletHub, "2023's States with the Highest and Lowest Credit-Card Debts," suggests at least in Ohio we're doing relatively well on that front.
The Buckeye State ranks 46th -- with $2,375 median credit card debt; $248 cost of interest until payoff; and 11 months and 27 days until payoff (if there are no new expenditures).
"Americans aren't all in the same boat when it comes to credit-card debt, though," writes report author Adam McCann.
Ohio's median income, as listed on the report, is $51,482, yet we are near the bottom of the list for median credit card debt.
Meanwhile the "state" with the highest median earnings for full-time workers is the District of Columbia; but it also has the second-highest median credit card debt.
"There are two major reasons. First, people who start accumulating credit card debt often do not have a choice. Unexpected expenses, such as unforeseen medical or other emergencies, may push people to overextend and spend more than they can pay back in time," said Paul Obermann, an assistant professor at Idaho State University. " … The second reason is poor budgeting."
It seems here in Ohio many people have done a good job of avoiding all that.
Whatever the reason, Ohioans should take the data as a sign that we are on the right track; and as inspiration to keep working for even better.