Excluding their mortgages, individuals in 13 states owe more than they make in a year, according to data released by PeerFinance101. On average, the amount of debt individuals are carrying represents 91% of the median income in their state.
The states where the amount of average debt exceeds the media income are:
- Texas ($55,500 average debt, representing 119% of the median income)
- Oklahoma ($54,900, 112%)
- Arkansas ($51,900, 117%)
- Missouri ($52,700, 126%)
- Louisiana ($54,000, 116%)
- Alabama ($54,700, 118%)
- Georgia ($57,500, 107%)
- South Carolina ($53,600, 108%)
- Tennessee ($52,400, 108%)
- West Virginia ($55,300, 127%)
- Maine ($48,500, 107%)
- Maryland ($61,300, 116%)
For every $5 individuals earn in income, $1 goes toward paying off debts, according to the report.
By contrast, Michigan was the state where the amount of debt was the lowest in relation to the median income. The average Michgander is carrying $48,800 in debt, which represents 64% of the state’s median income. Massachusetts was next, with an average of $52,200 in debt, which represents 65% of the median income.
Wages are not growing as fast as the amount of loans and credit that people are taking out, which is why the amount of debt relative to incomes is rising, according to the report. Hourly compensation has risen about 2.2% per year since 2009, which is about half as much as it was rising prior to the financial crisis of 2008.
