Wyoming Avoids Bottom 10 on List of Best States for Managing Debt
We have our work cut out for us in the Cowboy state if we want to better manage debt.
Debt. That's a four-lettered word if we've ever head one. Like a dark cloud hanging over our head, debt can feel overwhelming. Managing that debt can sometimes be easier said than done and, to be honest, some states seem to be better at it than others. At least that's what Credible.com says.
The financial website released a list of the "Best and Worst States for Managing Debt."
This list doesn't necessarily mean the best states have the least amount of debt, but they are in better positions to pay off that debt. These rankings came from a delicate balance of average income and how big monthly payments are on items like credit cards, student loans and housing. This ratio served as a measuring stick.
Michigan ranked highest on Credible's list making them the best at managing debt.
Michigan did not have the highest average income, nor the lowest monthly payments, but they did have the best "Monthly Debt-to-Income Ratio." Michigan's ratio was 25.27%. Rounding out the top five were Arkansas, Delaware, Kentucky, and Missouri.
On the other side of this list are the states who are considered the worst at managing debt. The bottom 10 include Florida, Maine, Vermont, Alaska, Virginia, Montana, Oregon, Colorado, Washington and Hawaii coming in at number 50.
Wyoming ranked at number 40 on the list, just barely missing the bottom 10. Our debt-to-income ratio is 30.71%. That's one-third of our paycheck going to monthly payments. Ouch!