Washington State Residents Are Drowning In Massive Debt

With everything going on in the country right now it feels like everyone is in debt to some degree. Housing costs continue to go up, mortgage rates aren't really moving, and interest rates can be painful to look at.  Not all debt is created equal and not all states are in the same quagmire.

Household debt has surpassed 18 trillion dollars...that's TRILLION.  Delinquency with regard to auto and credit card debt is still elevated.  There are plenty of factors that play into the debt equation, but Washingtonians are one of the groups in the largest amount of debt nationally.

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The data experts at Wallethub.com looked at the states where debt increased the most between the 2nd and 3rd quarter of 2024.  It's not pretty for the Evergreen State.  While we aren't the deepest in debt, we are in the top 5.

The average increase in debt in Washington State was $234,000 from Q2 to Q3.  That's the average of all residents in debt.  The amount of debt residents in Washington added is a staggering $2,963,075,440.  That's behind California ($14,314,624,862), Texas ($5,788,784,068), Florida($5,283,635,360), and New York($4,852,189,021).

The four states above us are the four most populous states in the country.  We are thirteenth in population, yet fifth highest in debt.  Our average debt increase over that time was $995, also good for fifth place.  It was a mere $154 off off the top spot in that category (claimed by Hawaii).

So How Did We Get Here?

There are plenty of factors, but Wallethub analyst Chip Lupo had this to say about what the amount of debt could signify.

A big increase in a state’s average household debt can be a sign that residents are struggling financially. For example, inflation may be pushing people to borrow more just to afford necessities.

In Washington State we have seen a number of things impact what is coming out of our wallets.  Any tax increase always hits the consumer whether it is directly or passed on through a business.  The Tax Foundation has a breakdown on the big taxes in our state so you can see the percentages levied on you and businesses that operate within.

Wallethub's methodology was simple... they analyzed data on consumers’ finances from TransUnion, as well as the Federal Reserve along with adjusting for inflation in the 4th quarter of 2024.  I don't know about you, but I'm not looking forward to seeing this same study later this year.