Study: R.I. 13th-lowest credit card debt burden in U.S.

CREDITCARDS.COM said Rhode Island has the 13th-lowest credit card debt burden in the U.S. / COURTESY CREDITCARDS.COM
CREDITCARDS.COM said Rhode Island has the 13th-lowest credit card debt burden in the U.S. / COURTESY CREDITCARDS.COM

PROVIDENCE – Rhode Island has the 13th-lowest credit card debt burden in the United States, according to a new CreditCards.com report.
CreditCards.com, an online credit card marketplace, rated states by comparing average credit card debt and median income, ranking them by how quickly residents can erase the average card balance using 15 percent of their earnings.
Rhode Island’s average debt is $38,713.60, with an average credit card balance of $5,673.92. If Rhode Islanders dedicate 15 percent of their earnings to paying off the balance, it could be paid off in 15 months, with $557 in interest.

Alaska has the heaviest credit card burden in the U.S. with an average debt of $42,664. The average credit card balance there is $7,552, one-third higher than the national average of $5,551.
It would take Alaskans 20 months and $992 in interest to wipe out their average card debt using 15 percent of their earnings to pay it off.

North Dakota has the lowest credit card debt burden with an average debt of $41,079 and an average credit card balance of $4,599.
Using 15 percent of their earnings, North Dakotans manage to pay their $4,599 average balance in 12 months, while racking up $370 in interest, CreditCards.com said.

“It’s very hard to get out of debt if you’re already stretching every dollar to pay for food, housing and other essentials,” Matt Schulz, CreditCards.com’s senior industry analyst, said in a statement. “If you’re in this position, consider a 0 percent balance transfer credit card – these interest-free periods last as long as 21 months. Another idea is to dedicate as much extra money as you can towards your credit card debt, certainly much more than the minimum that’s due each month.”

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