Credit card debt study: Minnesotans most fiscally irresponsible in upper Midwest

Categories: How We Live
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Compared to our neighbors, Minnesotans are drowning in credit card debt.
Compared to our five-state-area neighbors, Minnesotans like to live beyond our means.

According to a new study by the Washington nonprofit Corporation for Enterprise Development, the average Minnesotan carries $10,355 in credit card debt. Residents of 27 states have more per-consumer credit card debt, so in the grand scheme of things we aren't doing so bad -- unless we're compared with Iowans, Wisconsinites, and No and SoDakians.

With average credit card tab of $5,873, Iowans actually carry less credit card debt than residents of any other state. North Dakotans are second in the nation with an average debt of $6,094.

South Dakotans clock in with an average credit card debt load of $6,641, with 'Sconnies not far behind at $7,870.

Though the macroeconomy seems to be pulling out of The Great Recession, consumer debt remains a problem. A Federal Reserve report from early this year concluded that overall consumer debt jumped 10 percent in November 2011 to $2.48 trillion -- the largest one-month jump in exactly a decade. The jump could indicate greater confidence from consumers who expect to have money in the future to pay down their debt, or it could reflect the simple fact that shoppers didn't have the dough to cash flow purchases they wouldn't have charged to credit cards in previous years.

So next holiday season, keep in mind that in many cases, the best presents are handmade and heartfelt, not store-bought. It's a lesson that our neighbors on all sides seem to have already learned, at least when compared to us free-spending Minnesotans.

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8 comments
bankruptcy attorney Baltimore
bankruptcy attorney Baltimore

The results of this study are very alarming. It proves that more people are failing to pay credit card debt because of various reasons. Credit card users must learn to use their credit cards wisely to avoid dealing with so much debt. 

Kirk the Conservative Jerk
Kirk the Conservative Jerk

@ seanShouldn't that logic mean they need to spend more on everyday life?  1. Gas prices, because of necessary travel distance.2. Grocery store food costs are higher because of shipping costs.

Wisconsin is included in this, and they have a higher population thanMinnesota.

Minnesota has 66.6 people per sq. mile

Iowa has 54.5 people per sq. mile

South Dakota has 10.7 people per sq. mile

North Dakota has 9.7 people per sq. mile

Wisconsin has 105.0 people per sq. mile

Furthermore, you are rationalizing borrowing money to spend on entertainment.  That sir is the golden example when it comesto fiscal irresponsibility.

Fdsa
Fdsa

I agree, most consumer debt is actually necessities.

Kirk the Conservative Jerk
Kirk the Conservative Jerk

Ya, so what?

Why should we live within our means?

The federal government has led by this example.

When you max out your current credit limit, you raise the credit limit by getting another credit card from China. (federal debt ceiling)

Sean
Sean

That's because the states surrounding Minnesota are in a large part rural areas where things like gas, groceries and restaurants cost less. Minnesota is much more urban. To get into a rural area in MN you pretty much have to travel far west of the twin cities or up north to grand rapids/lake of the woods. I wonder what the other Midwest states spend their credit on because there isn't a thing to do in any of those states. They all come here for fun and entertainment.

Mn Votur
Mn Votur

That makes zero sense and has nothing to do with racking up credit card debt.   I would more wager that the housing bubble indirectly influences this trend because Minnesotans are often duped into 40 year mortgages they can't pay.

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