10 States Where Credit Card Debts Are Going Unpaid
Rising credit card debt levels have been on the mind of economists and ordinary Americans alike over the course of the past few years. Not only does credit card debt carry some of the highest interest rates of any obligations found in the United States — loan sharks aside — it also carries a relatively high default rate.
When credit card companies consider a debt to be irretrievable, it is “charged off,” or placed into a separate book. This is bad for the companies, which fail to collect money off the debt, as well as for individuals, who will retain the blemish on their credit score for years to come.
The percent of credit card debt that is charged off has dropped substantially over the course of the past couple of years. In the second quarter of 2013, Alaska’s rate of charge offs even sank below 2 percent, the only state in the nation to do so. However, the picture is not quite so rosy for many other states in the country.
Let’s take a look at the 10 states with the highest percentage of charged-off credit card debt in the United States, using numbers from Credit.com’s blog.