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The cost of living is constantly rising, but for Wisconsinites, that doesn’t necessarily mean we’re drowning in debt.
Per a new report from Upgraded Points, Wisconsin ranked lowest in the nation in terms of credit card delinquency. The report found that Wisconsin had a credit card delinquency rate of 5.34%, compared to the national average of 8.22%. While we may rack up a bill or two, the state’s households pay their debts on time. The state’s average credit score is 735, which, while shy of what’s considered “perfect” at 850, is impressive overall. Wisconsin was only bested by Vermont and Maine in that category.
The study measured “delinquency” as cardholders having payments more than 90 days outstanding. Analysis came from the Federal Reserve Bank of New York’s household debt and credit report and Experian’s FICO Score by State. Data was measured based on the fourth quarter of 2021.
Looking at a slightly broader scope, Wisconsin is joined by Minnesota and Vermont as the states with the lowest number of delinquent payments. The study found that credit card delinquency is generally higher in the southern states, most notably the Southeast. Florida and Arkansas more than doubled Wisconsin’s percentage of delinquent payments, and Nevada also topped the list with a delinquent payment rate over 12%. Las Vegas may have a thing or two to do with that.
Another factor to look at is level of income. The southern states listed in the bottom of the study’s findings generally have lower wages, which can create a cycle of relying on credit cards for payment, and then struggling to pay them off. While the wage in Wisconsin is higher on average in the south, it is not as high as on both the east and west coasts of the country. However, a more comfortable cost of living requires less dependency on credit cards, and therefore less of a struggle from a general standpoint to pay them off.
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As the year winds down and expenses inevitably go up with colder weather and the holiday season, you might be tempted to pull the credit card out. If you do, however, be sure to make like the rest of the state and pay your debts back on time.
