Across 23 states, credit cardholders have successfully paid down their winter balances between the third quarter of 2023 and the first quarter of 2024. Delaware led these states with the most significant reduction, averaging a decrease of 9.1% in credit card debt. Conversely, in six states, credit card balances increased by over 10%, with Alaska experiencing the largest increase at 18.2%. Despite these fluctuations, the overall trend shows a drop in average monthly minimum payments in 24 states, with West Virginia seeing the most substantial decrease. The study also highlights changes in delinquency rates, showing an improvement in 27 states but a rise in 20 others, indicating a varied financial landscape across the country. These findings underscore the impact of financial strategies post-holidays, including the use of tax refunds to reduce high-interest debt.
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