Maryland Ranks 6th Among States Where Consumer Debt Is Increasing the Most, According to Study

Maryland has been identified as the sixth state with the most significant increase in household debt, according to a recent WalletHub study. This study, utilizing data from the Federal Reserve, reveals a troubling rise in consumer debt nationwide, which now exceeds $17.3 trillion as of the third quarter of 2023.

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The WalletHub report ranks states based on the increase in credit card, auto loan, and personal loan debt from Q3 2023 to Q4 2023. For Maryland, the statistics are as follows:

• Overall Rank: 6th
• Credit Card Debt: The average credit card balance grew by 5.99%, reaching $8,404.
• Auto Loan Debt: The average auto loan balance increased by 0.60%, totaling $27,075.
• Personal Loan Debt: The average personal loan balance decreased slightly by 0.14%, settling at $14,782.

These figures highlight Maryland's significant rise in household debt and suggest broader financial challenges. In particular, Maryland residents face substantial financial burdens across several categories:

• Credit Card Debt: Maryland ranks fourth in the nation for per capita credit card debt, with an average balance of $4,190.
• Student Loan Debt: The state has the second highest per capita student loan burden, averaging $7,050.
• Mortgage Debt: Maryland is also sixth for mortgage debt in the DC suburbs, further adding to financial strain.

Moreover, Maryland households are nearing a troubling debt-to-income ratio of $2 for every $1 of income (1.9 ratio, 3rd highest in the nation). This ratio indicates that many residents are close to being overwhelmed by their debt levels.