In this article, we will list 5 US states with the least debt per capita. If you want to read our discussion about rising interest rates and their effect on the housing market, go to 15 US States with the Least Debt Per Capita.
5 – Ohio
Total Debt Per Capita – $52,232
Ohio is fifth on our list of the 15 US states with the least debt per capita. Although it has one of the highest government debt per capita, the overall low household debt per capita of a little more than $44,000 keeps the total debt per capita in check. The state has relatively affordable housing as it consistently ranks high in Moody’s Housing Affordability Index. Affordable housing keeps overall mortgage lending low in the state.
4 – Alabama
Total Debt Per Capita – $51,257
At around $6,800, Alabama has one of the lowest government debt per capita. Interestingly, its household debt per capita is higher than in Ohio, which ranks lower on our list. The state has one of the most stringent debt limits. The Ohio constitution limits the government debt to $750,000 in the absence of a public vote. Ohioans have consistently shown a preference toward limiting government debt through their voting patterns, making it 4th in the list of US states with the least debt per capita.
3 – Arkansas
Total Debt Per Capita – $45,999
Arkansas is third on our list of the 15 US states with the least debt per capita. Government debt per capita in the state is similar to Alabama, but its $39,150 household debt per capita is one of the lowest in the United States. While the state has high rates of auto debt, its credit card borrowing and mortgage debt remain low. The state has a stable cost of living which has kept household borrowing in check. In addition, the state has comparatively lower real estate borrowing, which has resulted in lower mortgage borrowing.
2 – West Virginia
Total Debt Per Capita – $43,808
At around $34,200, West Virginia has the lowest household debt per capita compared to other states in the country. For perspective, the household debt per capita of the state that tops our list is around 38,100. Interestingly, the state has the 19th highest government debt per capita. The combination of these two debts per capita still means that West Virginia is second on our list of the states with the least debt per capita.
1 – Mississippi
Total Debt Per Capita – $43,132
Mississippi tops our list of the 15 US states with the least debt per capita. It ranks fifth in terms of states with the least government debt per capita and second in terms of states with the least household debts per capita. The state has a relatively lower cost of living compared to others, contributing to overall low household debt. According to a report by Lending Tree, residents of Mississippi pay the least amount of their money on debt, with an average of just above $1,200 per month.
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