PROVIDENCE – Rhode Island had the third-highest average credit card debt in New England, according to a report from ChamberofCommerce.org. With average credit card debt of $8,162, Rhode Island ranked No. 21 in the nation.
The report also found that if Rhode Islanders paid 15% of their income – based on a median household income per year of $63,870 – it would take on average one year to pay down the debt. However, if the average credit card balance in the Ocean State were only paid down by the minimum each month, calculated as 2% of the balance, then it would take 112 months to pay off, incurring interest payments of $10,021. The interest payment in this scenario exceeds the principal amount.
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It is also worth noting that, given the percentages, all average debtors in any state would take 112 months to pay off average balances at 2% of the balance per month – with an assumed interest rate of 20.31% per year.
New England average credit card balances:
- Connecticut: $9,000
- New Hampshire: $8,252
- Rhode Island: $8,162
- Massachusetts: $7,994
- Maine and Vermont: $7,466
Alaska had the highest average credit card debt of any state at $10,685. Iowa had the lowest average at $6,726.
The report used data from the U.S. Bureau of Labor Statistics, the Federal Reserve and CNBC. View the full report online.
