New research has revealed troubling trends in the personal debt landscape of the United States, with New York ranking 44th in the percentage increase in personal debt over the past decade. According to the study by Debt Relief Karma, which analyzed government data from the Federal Reserve Bank of New York, New Yorkers are carrying an increasing burden of debt, with per capita debt rising by 21.90% from 2013 to 2023.
The data shows that the average New York resident’s debt burden has increased by $10,370 per person, with per capita debt jumping from $47,360 in 2013 to $57,730 in 2023. While this increase may seem modest compared with other states, it is part of a larger national trend in which personal debt levels have risen significantly in many states.
Debt Growth Across the U.S.
New York’s rise in debt is part of a broader pattern seen across the U.S., where personal debt levels have surged. States such as Utah, Texas, and Idaho have experienced the most significant increases, with Utah leading with a 59.43% increase in per capita debt. Texas follows closely behind with a 59.10% increase, marking a substantial change in the national financial landscape.
In contrast to these states, New York’s 21.90% increase ranks 44th nationally in percentage growth, indicating that while the state’s residents are experiencing debt increases, they are not among the hardest hit relative to other regions. However, the $10,370 per-person increase remains a significant financial burden for many New Yorkers.
State-Specific Analysis: What the Data Shows
The study’s findings highlight key insights into the states most affected by rising personal debt. Here are the top five states by percentage increase in personal debt from 2013 to 2023:
Utah: +59.43%
From $50,330 to $80,240 per capita
Dollar increase: $29,910
Texas: +59.10%
From $35,550 to $56,560 per capita
Dollar increase: $21,010
Idaho: +56.65%
From $41,800 to $65,480 per capita
Dollar increase: $23,680
Colorado: +51.60%
From $59,870 to $90,760 per capita
Dollar increase: $30,890
Nevada: +50.30%
From $45,270 to $68,040 per capita
Dollar increase: $22,770
Notably, Colorado has experienced the most significant absolute dollar increase in personal debt, with an additional $30,890 per person. Meanwhile, Utah’s per-capita debt has increased by nearly $30,000, from $50,330 to $80,240.
Despite the substantial increase in New York’s personal debt burden, the state’s overall debt remains lower than that of states such as California ($85,050) and Colorado ($90,760), which have even larger absolute debt figures.
What This Means for New Yorkers
For many New Yorkers, the increase in personal debt could have wide-reaching implications. Rising debt can strain household finances, limit spending power, and create long-term challenges for families and individuals. This trend is particularly concerning, as it occurs during a period of economic uncertainty, with inflation and wage growth not always keeping pace with the rising cost of living.
Andriy Nezdropa, CEO of Gravis Group and founder of Debt Relief Karma, shared insights on managing personal debt: “For those in extreme debt, it can sometimes feel like there is no way out of it. However, there are a few methods that can help.”
Nezdropa recommends creating a detailed budget to track income and expenses, exploring debt consolidation options to lower interest rates, and prioritizing emergency savings. “Even a small emergency fund of $1,000 can prevent you from relying on credit cards when unexpected expenses arise,” he advised.
He also emphasized the importance of seeking professional assistance through credit counseling services for individuals experiencing debt overload.
A Nationwide Concern
The research highlights a nationwide concern about rising debt levels, particularly in states where personal debt growth outpaces wage growth and inflation. The trend underscores the growing need for financial education and debt relief strategies to help Americans manage and reduce their debt burdens effectively.
As more states experience similar increases in personal debt, it is clear that rising financial strain is a key challenge that must be addressed at both the individual and national levels.
