Not California, Not New York: This East Coast State Has The Highest Average Credit Card Debt

Credit card debt in the United States, as of Q2 2026, was nearly at its highest point since tracking began in 1999. According to the Federal Reserve Bank of New York, total U.S. credit card debt reached $1.26 trillion in Q2 2026, only slightly less than the peak of $1.27 in Q4 2025. While the amount of credit card debt out there varies by person, it also varies by state. You might expect states with high costs of living, like California or New York, to rank No. 1 in credit card debt amounts, and you're not wrong. However, LendingTree found that New Jersey actually lead in credit card debt for Q1 2026 — at $9,733 per person on average. For context, West Virginia came in last with $4,847 per person – about half of New Jersey's average. 

Per April 2026 data from U.S. News & World Report, New Jersey had the eighth highest housing costs in the country — with a median home price of $505,000. Plus, New Jersey has the highest effective property tax rate in the country at 1.88%, as of August 2026 Meanwhile, per a Cost of Living USA analysis, New Jersey has the sixth highest cost of living in the U.S. Rising housing and grocery costs, among other inflationary expenses, can push families to increasingly rely on credit cards for basic monthly expenses. This can help explain why states with higher costs of living tend to also have higher average credit card debt.

Regardless of why someone accumulates credit card debt in New Jersey, or any other state, carrying a balance is a costly credit card mistake that people should avoid. Interest rates are not only high on credit cards, but these interest charges ultimately add to your outstanding debt — creating a negative cycle that is harder to escape. This could help explain why the average New Jersey credit card debt was 4.1% higher in Q1 2026 than it was the year prior.

As credit card debt skyrockets, consumers should focus on finding the right strategy to help them manage their debt. This can start with differentiating between good debt and bad debt, as well as finding effective pay-down strategies that work for individual budgets. Some might choose to pay off their smallest debts first, while others might prefer to pay off debts in the order of highest interest rate. The most important thing is to ensure your approach works for your specific finances, and to remember that any progress, however slow, is still getting you closer to your goals.