Florida residents are spending more of their income paying down credit card debt than people in any other state in the country.
According to a new study by H&P Law, Florida households carry an average credit card debt of $5,000, ranking fourth highest in the country.
What makes this figure particularly concerning is that the $5,000 in credit card debt represents 7% of the median household income in Florida — the highest percentage among all states in the study. This suggests that Floridians may rely more heavily on credit cards relative to their income than residents of other states.
"This study highlights how credit card debt levels can vary dramatically across each state. But regardless of where you live, managing the debt is vital. Many people turn to strategies such as the avalanche strategy, where you pay off the highest interest debts first. This minimizes the long term financial strain," said Matthew Pfau, partner at H&P Law.
"Debt management strategies will point you in the right direction, but it's wise to consult with a financial professional who can understand the bigger picture of your situation," Pfau said.
Connecticut and Colorado residents carry the most credit card debt in the country, with averages just shy of $6,000 per household.
On the opposite end of the spectrum, Iowa households have the lowest credit card debt in the country at just $1,500.
Nationwide, Americans now hold a record-breaking $1.2 trillion in credit card debt, and experts say interest rates aren't expected to come down anytime soon.
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