The States Leading Household Debt Increases as U.S. Total Tops $19 Trillion

Hawaii and California led the nation in rising household debt during the third quarter of 2026, while Mississippi recorded the smallest increase, according to a new WalletHub study that found balances climbed in all 50 states.

The personal finance website compared second-quarter and third-quarter figures using data from TransUnion and the Federal Reserve. Its findings show a substantial gap in the dollar amounts households added, with Hawaii's average increase more than three times Mississippi's.

Nationwide, household debt exceeded $19.1 trillion in the third quarter, according to the study's accompanying summary. The state rankings offer a closer look at where average balances increased most, although they do not establish whether borrowers are falling behind on payments.

Hawaii ranked first with an average household debt increase of $2,216, bringing its average balance to $283,166. Across the state, total household debt reached approximately $125.4 billion after increasing by about $1.09 billion during the quarter. California followed with an average increase of $2,071 per household and an average balance of $264,659. Its statewide debt grew by approximately $28.06 billion to $3.22 trillion.

Utah placed third, with households adding an average of $1,952 and carrying average debt of $249,443. Washington ranked fourth with an increase of $1,940, followed closely by Colorado at $1,937. Average household balances in those states reached $247,864 and $247,483, respectively.

Massachusetts, Maryland, Idaho, Virginia and Oregon rounded out the 10 states with the largest average household debt increases. Their quarterly gains ranged from $1,528 in Oregon to $1,730 in Massachusetts.

At the other end of the rankings, Mississippi households added an average of $648, bringing average debt to $82,810. West Virginia recorded the second-smallest increase at $695, followed by Oklahoma at $779, Louisiana at $790 and Arkansas at $794.

Even those comparatively modest gains represented additional borrowing. None of the states in the supplied rankings recorded a decline in average household debt during the quarter.

The gap between the highest and lowest increases was $1,568 per household. Hawaii's average debt balance also exceeded Mississippi's by more than $200,000, underscoring how widely the dollar amounts varied across states.

Florida ranked 21st, with average household debt rising $1,248 to $159,442. Its total balance increased by approximately $10.92 billion to $1.25 trillion. Texas ranked 28th by average household increase, adding $1,101, but its statewide total grew by roughly $12.11 billion.

Those comparisons matter because a state's position in the ranking does not necessarily reflect its contribution to the national increase. Larger statewide totals and larger average household gains measure different aspects of borrowing.

WalletHub analyst Chip Lupo cautioned that rising balances can signal financial pressure, while emphasizing that debt growth alone does not show whether borrowers can manage their obligations. "A big increase in a state's average household debt can be a sign that residents are struggling financially," Lupo said.

He added that "inflation may be pushing people to borrow more just to afford necessities. However, residents of some states may be able to handle an increased debt load well, which is why it's important to also consider delinquency rates to see whether people have enough income and good enough budgeting skills to keep up with higher loan payments."