States with the Highest Average Household Debt
States ranked by average personal debt per person (2025). D.C. leads at $102,400, followed by Colorado and California. Debt is driven primarily by mortgages in higher-cost states.
Data
| # | State | Average Personal Debt |
|---|---|---|
| 1 | District of Columbia | $102,400 |
| 2 | Colorado | $92,690 |
| 3 | California | $87,850 |
| 4 | Washington | $85,880 |
| 5 | Hawaii | $83,480 |
| 6 | Utah | $83,350 |
| 7 | Maryland | $81,390 |
| 8 | Massachusetts | $77,400 |
| 9 | Virginia | $77,060 |
| 10 | Nevada | $71,260 |
Note: Why America's Highest-Debt States Are Also Its Priciest
What the Data Shows
The District of Columbia leads the ranking with $102,400 in average personal debt per person, ahead of Colorado at $92,690 and California at $87,850. The top 10 consists almost entirely of high-cost, high-income states and the District: Washington, Hawaii, Utah, Maryland, Massachusetts, Virginia, and Nevada round out the list.
- D.C. tops the chart at $102,400 per person.
- Colorado ($92,690) and California ($87,850) follow in 2nd and 3rd.
- Massachusetts ($77,400) is the highest-ranking state east of the Mississippi.
- Nevada ($71,260) is the lowest entry in the top 10.
Where Household Debt Comes From
Household debt is the sum of mortgages, credit card balances, auto loans, student loans, and smaller categories like medical debt and personal loans. Mortgages are by far the largest component, typically two-thirds or more of total household debt, which is exactly why expensive housing markets push whole states up the ranking.
- Mortgage debt dominates the total in every state on the list.
- Credit cards and auto loans add a smaller but persistent layer on top.
- Student loan balances concentrate in coastal, highly educated states.
Why Housing Costs Drive the Rankings
Every state in the top 10 is a relatively expensive place to live, and several have seen home prices outpace local income growth. In California and Hawaii, high median home prices mean bigger mortgage balances even for the median buyer. In Utah, rapid population growth and tight housing supply have pushed prices up quickly. Washington's strong economy attracts skilled workers who carry larger mortgages alongside the six-figure salaries that service them.
Debt Is Not the Same as Distress
High average debt usually reflects high incomes and high asset prices rather than financial distress. A borrower with a large mortgage in D.C. or California is typically a homeowner with a solid income, not someone drowning in unsecured credit. Because this is a per-person average, states with many older residents who own homes free and clear can rank lower despite perfectly comfortable finances.
Nationally, total household debt has climbed for years, driven mainly by mortgages, with credit card and auto balances rising faster recently. Debt becomes dangerous when it is unsecured, high interest, or tied to a sudden loss of income.
What to Watch
Delinquency and default rates matter more than averages. When mortgage or credit card delinquency rises together across the highest-debt states, that is an early warning signal for the broader economy. Rising interest rates also bite hardest in states where people carry the largest balances.
Fun Facts
- D.C.'s average of $102,400 is roughly 44% higher than 10th-place Nevada at $71,260.
- Hawaii ($83,480) and Utah ($83,350) sit within $130 of each other.
- Three of the top five entries (Colorado, California, Washington) are in the West.
- None of the top 10 states are in the South, despite several fast-growing Southern metros.
- Mortgages typically account for roughly two-thirds or more of total household debt.
- Every state in the top 10 is also a high-income state, so debt-to-income ratios look far less scary than raw averages.
- High average debt in a state often means high home equity, not just high borrowing.