Guess what: Borrowers in poorer states sometimes do better at managing debt than those who live in more affluent areas. That’s according to a new study from Credible.com that analyzed data from 540,000 borrowers.
The site weighed figures for student and consumer debt plus housing expenses against average monthly incomes. The study found that on average, Americans spend $207 a month on credit card payments, $370 on student loan payments, and $906 on housing, while earning an average of $60,671 per year.
But the state-by-state breakdown reveal that higher salaries don’t necessarily equate to good debt handling, and a smaller paychecks don’t automatically suggest poor debt handling.
Credible calculated a “monthly debt-to-income ratio” for each state, and from that created a ranking. The top spot (with the lowest monthly debt-to-income ratio) might surprise you. Read on to find out what it is, and where your state ranks.
1. Michigan
Yes, Michigan is the state where residents spend the smallest portion of their monthly income making payments on their debt and housing costs — just over 25 percent. In part, the study explains, the state’s low housing costs relative to incomes plays a role, helping residents hang on to more of their paychecks. Here are the numbers that went into that calculation.
Monthly debt-to-income ratio: 25.27 percent
- Average monthly credit card payment: $198
- Average monthly student loan payment: $354
- Average monthly housing payment: $725
- Average annual income: $60,642
2. Arkansas
Monthly debt-to-income ratio: 25.62 percent
- Average monthly credit card payment: $174
- Average monthly student loan payment: $319
- Average monthly housing payment: $666
- Average annual income: $54,284
3. Delaware
Monthly debt-to-income ratio: 26.74 percent
- Average monthly credit card payment: $213
- Average monthly student loan payment: $364
- Average monthly housing payment: $853
- Average annual income: $64,174
4. Kentucky
Monthly debt-to-income ratio: 26.82 percent
- Average monthly credit card payment: $184
- Average monthly student loan payment: $323
- Average monthly housing payment: $696
- Average annual income: $53,821
5. Missouri
Monthly debt-to-income ratio: 27.34 percent
- Average monthly credit card payment: $203
- Average monthly student loan payment: $340
- Average monthly housing payment: $738
- Average annual income: $56,234
6. Mississippi
Monthly debt-to-income ratio: 27.66 percent
- Average monthly credit card payment: $154
- Average monthly student loan payment: $263
- Average monthly housing payment: $574
- Average annual income: $42,993
7. Ohio
Monthly debt-to-income ratio: 28.19 percent
- Average monthly credit card payment: $211
- Average monthly student loan payment: $370
- Average monthly housing payment: $729
- Average annual income: $55,763
8. Indiana
Monthly debt-to-income ratio: 28.20 percent
- Average monthly credit card payment: $197
- Average monthly student loan payment: $343
- Average monthly housing payment: $699
- Average annual income: $52,717
9. Pennsylvania
Monthly debt-to-income ratio: 28.21 percent
- Average monthly credit card payment: $215
- Average monthly student loan payment: $394
- Average monthly housing payment: $746
- Average annual income: $57,636
10. Georgia
Monthly debt-to-income ratio: 28.24 percent
- Average monthly credit card payment: $186
- Average monthly student loan payment: $328
- Average monthly housing payment: $812
- Average annual income: $56,344
11. West Virginia
Monthly debt-to-income ratio: 28.25 percent
- Average monthly credit card payment: $193
- Average monthly student loan payment: $337
- Average monthly housing payment: $624
- Average annual income: $49,017
12. North Carolina
Monthly debt-to-income ratio: 28.30 percent
- Average monthly credit card payment: $193
- Average monthly student loan payment: $338
- Average monthly housing payment: $810
- Average annual income: $56,867
13. New Jersey
Monthly debt-to-income ratio: 28.36 percent
- Average monthly credit card payment: $231
- Average monthly student loan payment: $435
- Average monthly housing payment: $997
- Average annual income: $70,378
14. Rhode Island
Monthly debt-to-income ratio: 28.58 percent
- Average monthly credit card payment: $210
- Average monthly student loan payment: $418
- Average monthly housing payment: $842
- Average annual income: $61,727
15. Iowa
Monthly debt-to-income ratio: 28.68 percent
- Average monthly credit card payment: $202
- Average monthly student loan payment: $367
- Average monthly housing payment: $751
- Average annual income: $55,226
16. New Mexico
Monthly debt-to-income ratio: 28.71 percent
- Average monthly credit card payment: $184
- Average monthly student loan payment: $336
- Average monthly housing payment: $787
- Average annual income: $54,636
17. Nevada
Monthly debt-to-income ratio: 28.77 percent
- Average monthly credit card payment: $234
- Average monthly student loan payment: $430
- Average monthly housing payment: $966
- Average annual income: $67,993
18. Wisconsin
Monthly debt-to-income ratio: 28.97 percent
- Average monthly credit card payment: $215
- Average monthly student loan payment: $393
- Average monthly housing payment: $771
- Average annual income: $57,126
19. Texas
Monthly debt-to-income ratio: 28.99 percent
- Average monthly credit card payment: $203
- Average monthly student loan payment: $339
- Average monthly housing payment: $926
- Average annual income: $60,765
20. Utah
Monthly debt-to-income ratio: 29.07 percent
- Average monthly credit card payment: $187
- Average monthly student loan payment: $322
- Average monthly housing payment: $947
- Average annual income: $60,108
21. Connecticut
Monthly debt-to-income ratio: 29.09 percent
- Average monthly credit card payment: $231
- Average monthly student loan payment: $415
- Average monthly housing payment: $1,006
- Average annual income: $68,145
22. New York
Monthly debt-to-income ratio: 29.34 percent
- Average monthly credit card payment: $207
- Average monthly student loan payment: $394
- Average monthly housing payment: $979
- Average annual income: $64,613
23. Oklahoma
Monthly debt-to-income ratio: 29.35 percent
- Average monthly credit card payment: $202
- Average monthly student loan payment: $317
- Average monthly housing payment: $732
- Average annual income: $51,147
24. Illinois
Monthly debt-to-income ratio: 29.35 percent
- Average monthly credit card payment: $221
- Average monthly student loan payment: $367
- Average monthly housing payment: $889
- Average annual income: $60,385
25. Massachusetts
Monthly debt-to-income ratio: 29.37 percent
- Average monthly credit card payment: $195
- Average monthly student loan payment: $449
- Average monthly housing payment: $991
- Average annual income: $66,813
26. Alabama
Monthly debt-to-income ratio: 29.41 percent
- Average monthly credit card payment: $186
- Average monthly student loan payment: $290
- Average monthly housing payment: $630
- Average annual income: $45,123
27. Louisiana
Monthly debt-to-income ratio: 29.52 percent
- Average monthly credit card payment: $157
- Average monthly student loan payment: $284
- Average monthly housing payment: $706
- Average annual income: $46,629
28. New Hampshire
Monthly debt-to-income ratio: 29.55 percent
- Average monthly credit card payment: $209
- Average monthly student loan payment: $418
- Average monthly housing payment: $926
- Average annual income: $63,071
29. Arizona
Monthly debt-to-income ratio: 29.58
- Average monthly credit card payment: $197
- Average monthly student loan payment: $340
- Average monthly housing payment: $878
- Average annual income: $57,412
30. South Carolina
Monthly debt-to-income ratio: 29.63 percent
- Average monthly credit card payment: $181
- Average monthly student loan payment: $349
- Average monthly housing payment: $732
- Average annual income: $51,115
31. Minnesota
Monthly debt-to-income ratio: 29.75 percent
- Average monthly credit card payment: $241
- Average monthly student loan payment: $371
- Average monthly housing payment: $899
- Average annual income: $60,941
32. Nebraska
Monthly debt-to-income ratio: 29.80 percent
- Average monthly credit card payment: $213
- Average monthly student loan payment: $364
- Average monthly housing payment: $808
- Average annual income: $55,773
33. Kansas
Monthly debt-to-income ratio: 29.85 percent
- Average monthly credit card payment: $204
- Average monthly student loan payment: $338
- Average monthly housing payment: $818
- Average annual income: $54,677
34. Tennessee
Monthly debt-to-income ratio: 29.90 percent
- Average monthly credit card payment: $196
- Average monthly student loan payment: $349
- Average monthly housing payment: $787
- Average annual income: $53,464
35. Maryland
Monthly debt-to-income ratio: 29.92 percent
- Average monthly credit card payment: $227
- Average monthly student loan payment: $405
- Average monthly housing payment: $1,084
- Average annual income: $68,819
36. District of Columbia
Monthly debt-to-income ratio: 29.93 percent
- Average monthly credit card payment: $160
- Average monthly student loan payment: $574
- Average monthly housing payment: $1,355
- Average annual income: $83,769
37. California
Monthly debt-to-income ratio: 29.93 percent
- Average monthly credit card payment: $208
- Average monthly student loan payment: $372
- Average monthly housing payment: $1,198
- Average annual income: $71,277
38. South Dakota
Monthly debt-to-income ratio: 30.30 percent
- Average monthly credit card payment: $201
- Average monthly student loan payment: $351
- Average monthly housing payment: $771
- Average annual income: $52,390
39. Idaho
Monthly debt-to-income ratio: 30.37 percent
- Average monthly credit card payment: $207
- Average monthly student loan payment: $356
- Average monthly housing payment: $858
- Average annual income: $56,143
40. North Dakota
Monthly debt-to-income ratio: 30.50 percent
- Average monthly credit card payment: $190
- Average monthly student loan payment: $312
- Average monthly housing payment: $727
- Average annual income: $48,351
41. Wyoming
Monthly debt-to-income ratio: 30.71 percent
- Average monthly credit card payment: $195
- Average monthly student loan payment: $308
- Average monthly housing payment: $894
- Average annual income: $54,594
42. Florida
Monthly debt-to-income ratio: 30.72 percent
- Average monthly credit card payment: $208
- Average monthly student loan payment: $330
- Average monthly housing payment: $893
- Average annual income: $55,899
43. Maine
Monthly debt-to-income ratio: 30.78 percent
- Average monthly credit card payment: $194
- Average monthly student loan payment: $451
- Average monthly housing payment: $767
- Average annual income: $55,047
44. Vermont
Monthly debt-to-income ratio: 31.03 percent
- Average monthly credit card payment: $184
- Average monthly student loan payment: $412
- Average monthly housing payment: $810
- Average annual income: $54,377
45. Alaska
Monthly debt-to-income ratio: 31.30 percent
- Average monthly credit card payment: $216
- Average monthly student loan payment: $443
- Average monthly housing payment: $1,018
- Average annual income: $64,304
46. Virginia
Monthly debt-to-income ratio: 31.35 percent
- Average monthly credit card payment: $216
- Average monthly student loan payment: $369
- Average monthly housing payment: $1,031
- Average annual income: $61,863
47. Montana
Monthly debt-to-income ratio: 32.06 percent
- Average monthly credit card payment: $188
- Average monthly student loan payment: $354
- Average monthly housing payment: $863
- Average annual income: $52,587
48. Oregon
Monthly debt-to-income ratio: 32.21 percent
- Average monthly credit card payment: $195
- Average monthly student loan payment: $393
- Average monthly housing payment: $973
- Average annual income: $58,147
49. Colorado
Monthly debt-to-income ratio: 32.22 percent
- Average monthly credit card payment: $215
- Average monthly student loan payment: $378
- Average monthly housing payment: $1,076
- Average annual income: $62,161
50. Washington
Monthly debt-to-income ratio: 32.40 percent
- Average monthly credit card payment: $221
- Average monthly student loan payment: $385
- Average monthly housing payment: $1,096
- Average annual income: $63,028
51. Hawaii
Monthly debt-to-income ratio: 36.15 percent
- Average monthly credit card payment: $238
- Average monthly student loan payment: $385
- Average monthly housing payment: $1,091
- Average annual income: $56,889
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