Average Credit Card Debt Dips in 23 States As Consumers Pay Down Their Winter Balances

Spring is here, and that often means spring cleaning.

It’s not just closets getting cleaned; many consumers are tackling credit card debt. According to the latest LendingTree study, credit cardholders in 23 states paid down their winter balances.

Here’s what we found.

Key findings

• Credit cardholders in 23 states paid down their winter balances between the third quarter of 2023 and the first quarter of 2024. Delaware credit cardholders led the way, with an average reduction of 9.1% (or $531.08) during that period. That’s followed by West Virginia at 8.6% (or $452.32) and Rhode Island at 7.5% (or $439.80).
• Cardholders in six states increased their average credit debt by more than 10.0% in the same period. Alaska saw the biggest jump, with credit cardholders increasing their balances by an average of 18.2% (or $1,168.75) — the only state with a four-digit spike. In a distant second, Vermont cardholders increased their balances by 13.5% (or $629.89), followed by Wyoming at 13.4% (or $655.73).
• Average monthly minimum payments also dropped in 24 states. Between the third quarter of 2023 and the first quarter of 2024, West Virginia saw the biggest drop in monthly minimum payments, decreasing by an average of 10.8% (or $19.25). That’s followed by Rhode Island at 6.4% (or $12.05) and Mississippi at 6.0% (or $10.61). Comparatively, average monthly minimum payments rose the most in Wyoming at 14.8% (or $22.90), followed by Alaska at 13.8% (or $26.37) and Vermont at 12.9% (or $19.89).
• Encouragingly, the percentage of cardholders delinquent on at least one card dropped in 27 states. Rhode Island saw the biggest drop, with delinquency rates falling 21.4% between the third quarter of 2023 and the first quarter of 2024. That’s followed by Hawaii (18.5%) and North Dakota (16.2%). Delinquency remained unchanged in four states. However, delinquency rates increased in 20 states. Montana saw the biggest increase, with the rate of cardholders delinquent on at least one card rising by 34.5%. That’s followed by South Dakota (32.4%) and New Hampshire (23.3%).

Credit cardholders reduce winter debt in 23 states

With the holiday season behind us, credit cardholders are tackling their debt. Across 23 states between the third quarter of 2023 and the first quarter of 2024, cardholders paid off at least some of their winter balances.

According to LendingTree chief credit analyst Matt Schulz, many factors may account for this. “Some of it is about changing their focus from spending during the holiday season to knocking down debt after the first of the year,” he says. “Just that mindset change, even a temporary one in the form of a New Year’s resolution, can make a real difference. Also, many people use their federal tax refunds to attack their high-interest debt.”

In our new research, Delaware credit cardholders led the way in paying down their winter balances. The average credit card balance in the state fell 9.1% (or $531.08) from $5,807.99 in the third quarter of 2023 to $5,276.91 in the first quarter of 2024.

States where credit cardholders decreased their balances most

Source: LendingTree analysis of consumer credit reports during the third quarter of 2023 (July 1 through Sept. 30, 2023) and first quarter of 2024 (Jan. 1 through March 31, 2024). 

West Virginia followed. The average credit card balance in the state fell 8.6% (or $452.32) from $5,229.55 to $4,777.23 in this period. Rhode Island rounded out the top three, with average credit card debt falling 7.5% (or $439.80) from $5,882.77 to $5,442.97.

Debt spiked by at least 10.0% in 6 states

Meanwhile, cardholders in 27 states increased their average credit card debt, with six states doing so by more than 10.0%.

Alaska (the only state where average balances jumped by at least $1,000) credit cardholders saw the biggest increase — 18.2% (or $1,168.75) from $6,418.55 to $7,587.30.

States where credit cardholders increased their balances most

Source: LendingTree analysis of consumer credit reports during the third quarter of 2023 (July 1 through Sept. 30, 2023) and first quarter of 2024 (Jan. 1 through March 31, 2024).

Far behind Alaska, Vermont cardholders increased their average balances by 13.5% (or $629.89) from $4,681.64 to $5,311.53. Wyoming rounded out the bottom three, with average balances rising 13.4% (or $655.73) from $4,894.48 to $5,550.21.

Full rankings

States where credit cardholders decreased/increased their balances most

Source: LendingTree analysis of consumer credit reports during the third quarter of 2023 (July 1 through Sept. 30, 2023) and first quarter of 2024 (Jan. 1 through March 31, 2024).

Average monthly minimum payments drop in 24 states

While many cardholders paid down their balances, average monthly minimum payments dropped in 24 states between the third quarter of 2023 and the first quarter of 2024.

By state, West Virginia saw the biggest drop in monthly minimum payments. Here, average minimum payments dropped 10.8% (or $19.25) from $177.93 to $158.68. Similarly, West Virginia saw the second-biggest drop in balances.

Rhode Island (another state that finished in the top three for the biggest balance dips) followed, with average minimum payments falling 6.4% (or $12.05) from $188.82 to $176.77. Mississippi followed, with payments decreasing 6.0% (or $10.61) from $176.57 to $165.96. For context, Mississippi saw the 10th-biggest balance dip.

States where credit cardholders decreased their minimum payments most 

Source: LendingTree analysis of consumer credit reports during the third quarter of 2023 (July 1 through Sept. 30, 2023) and first quarter of 2024 (Jan. 1 through March 31, 2024).

Conversely, average monthly minimum payments rose the most in Wyoming, jumping 14.8% (or $22.90) from $154.39 to $177.29. Alaska followed, with payments rising 13.8% (or $26.37) from $191.38 to $217.75. Finally, payments in Vermont rose 12.9% (or $19.89) from $153.82 to $173.71.

Similarly, these three states saw their average balances rise the most in the studied period, although in a different order.

Full rankings

States where credit cardholders decreased/increased their minimum payments most 

Source: LendingTree analysis of consumer credit reports during the third quarter of 2023 (July 1 through Sept. 30, 2023) and first quarter of 2024 (Jan. 1 through March 31, 2024).

Delinquency drops in 27 states while rising in 20

Aside from paying down debt, the percentage of cardholders delinquent on at least one card dropped in 27 states. According to Schulz, that’s expected this time of year.

“We often see debt fall in the first quarter as Americans focus on getting their finances back in order after the high-spending holiday season,” he says. “That often means less new spending, which can make it easier for folks to make their accounts current again.”

Rhode Island saw the biggest drop, with delinquency rates falling 21.4% from 4.2% in the third quarter of 2023 to 3.3% in the first quarter of 2024.

States where rate of cardholders delinquent on at least 1 card decreased most

Source: LendingTree analysis of consumer credit reports during the third quarter of 2023 (July 1 through Sept. 30, 2023) and first quarter of 2024 (Jan. 1 through March 31, 2024).

That’s followed by Hawaii, where delinquency rates dropped 18.5% from 2.7% to 2.2%, and North Dakota, with delinquency rates falling 16.2% from 3.7% to 3.1%.

Conversely, delinquency rates increased in 20 states. Of these states, Montana saw the biggest jump, with the rate of cardholders delinquent on at least one card rising 34.5% from 2.9% to 3.9%. South Dakota (32.4%) and New Hampshire (23.3%) had the next biggest increases.

Schulz says these increases are concerning. “While we tend to see debt fall nationally in the first quarter, that doesn’t mean those declines are spread equally throughout the nation,” he says. “Some states’ residents are struggling far more financially than others for any number of reasons. Given that inflation is sticking around and debt and interest rates are at or near all-time highs, it shouldn’t surprise anyone that some states saw their delinquency rates grow.”

Full rankings

States where rate of cardholders delinquent on at least 1 card decreased/increased most

Source: LendingTree analysis of consumer credit reports during the third quarter of 2023 (July 1 through Sept. 30, 2023) and first quarter of 2024 (Jan. 1 through March 31, 2024).

Dusting away debt: Spring cleaning tips

With no more fresh winter holiday expenses and tax season offering a potential reprieve in credit card debt, spring offers a great opportunity to clean up your debt. If your spring cleaning extends beyond your home and to your credit cards, Schulz offers the following advice:

• Continue to save while paying down debt. “It may seem counterintuitive, but growing your savings while lowering your debt can pay off in the long run,” he says. “That’s because if you have no savings when your debt gets to $0, the next big unexpected expense will have to go on your credit card, putting you back in debt. That’s a tough cycle to break, but the way to do it is to continue to save even while attacking your debt. Yes, you’ll pay a bit more and take a bit longer to pay off your debts, but it’ll be worth it.”
• Consolidate. “A 0% balance transfer credit card or a low-interest personal loan can help you lower your interest payments, reduce your payoff time and streamline your finances,” Schulz says. “They’re worth pursuing, especially if you still have good credit.”
• Ask for a lower APR. A 2023 LendingTree survey showed that 76% of those who asked for a lower credit card APR in the past year got one, and the average reduction was six percentage points. “That success rate means it isn’t just folks with an 800 credit score and a long track record getting their way,” he says.

Methodology

LendingTree analysts compared a subset of consumer credit reports representative of each state’s credit profile during the third quarter of 2023 (July 1 through Sept. 30, 2023) and the first quarter of 2024 (Jan. 1 through March 31, 2024) to determine the following for holders of active credit cards during those periods:

• Average total balance
• Average monthly minimum payments
• Percentage of such holders delinquent on at least one active card