Ever wonder how residents in your state compare to others in terms of financial health? Recently, Credible released a report that compares borrowers across all 50 states evaluating individual debt-to-income ratios. The results tell us a lot about money managing habits among Americans across the country.
The study took proprietary data from 540,000 borrowers and analyzed their monthly credit card, private student loan, and housing payments. Their monthly income was then divided by the total debt number, and each state received a score. The states with the highest scores are the most money wise.
Winners, Losers and Maryland’s Score
The highest score of 100 went to Michigan where they have an average monthly debt-to-income ratio (DTI) of 25.27 percent. Hawaii came in last with a score of zero and a DTI of 36.15 percent. Maryland came in at 35 with a score of 57.26. Our state’s average DTI, according to the Credible dataset, is 29.92 percent.
We Can Do Better
As a state, Maryland can do better. This means trimming our personal debt first and foremost. If we can increase wages, that helps our score too. Still, other factors come into play beyond just personal money management. The cost of living also affects your DTI, for instance, if you live in an area that has higher mortgage rates.
You can read the full report at Burdened by Debt: The Best and Worst States at Managing Debt.