Wyoming Saw Second Lowest Increase in Credit Card Debt
According to a report by Wallet Hub, Wyoming had the second lowest increase in credit card debt during the second quarter of 2022.
That ranking is due to a variety of factors, including average household credit card debt, average household credit card debt increase, total credit card debt, and total credit card debt increase.
While Wyoming ranked near the middle for average debt increase, $545, compared to Iowa with the lowest at $441, Wyoming had the lowest overall credit debt at $2,094,723,299, and the lowest total credit increases at $131,966,799.
Across the country as a whole, the average person owes $8,942 in credit card debt, a 4.5% increase from the first quarter, when the average was $8,558, which is a decrease from the fourth quarter of 2019 when the average was $10,447, and below the highest average over the past 30 years in the fourth quarter of 2007 at $11,937.
Vermont, which was ranked at the bottom of the list for a credit increase, was just above Wyoming for overall credit debt and overall credit increase but had a lower household credit increase at $502, while the average household in Wyoming owes $7,975 in credit card debt.
At the other end of the list, California ranked number one, followed by Texas, due to having the highest total debt and highest increases at $120,803,604,151 and $7,610,582,696 respectively.
According to data from the Wyoming Department of Administration and Information, unemployment continues to decrease across the state, as seasonally adjusted jobless rates fell to 3% in July, compared to the U.S. as a whole at 3.5% and compared to Wyoming in January 2020 at 3.7%.
At the same time, the cost of living index in Wyoming has been increasing each quarter, going from a 2% increase compared to the previous year in the fourth quarter of 2020, to a 7.7% increase in the second quarter of 2021, to a 9.3% increase in the fourth quarter of 2021.
Personal income in Wyoming has also been increasing but at a different rate, going from a .4% increase in the third quarter of 2021, compared to the previous year, to 10% in the fourth quarter of 2021, and most recently a 3% increase in the first quarter fo 2022.
Delaney Simchuck, a WalletHub analyst, said in the release by Wallet Hub that credit is rising due to inflation and consumer demand.
"Credit card debt levels are rising at a record pace in large part due to the combination of high inflation, pent-up demand, and consumers settling back into bad habits from before the pandemic," Simchuck said. "Many people have let their guard down after pinching pennies at the height of the pandemic, especially given the record employment levels we’re currently enjoying."