Cash-Strapped DC’ers Repay 95% Of Earnings On Personal Debt!

Cash-Strapped DC’ers Repay 95% Of Earnings On Personal Debt!
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DC’ers repay 95% of earnings on personal debt – the highest in the country. The ten American states with the highest household debt per capita revelead.

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A financial information service has revealed the states with the highest amount of household debt and the states with the high debt-to-income ratio – an indication of financial health used widely for lenders. The most student loans were found in Washington DC, with the state borrowing the most money for automobiles being Texas. The research conducted also reveals attitudes towards debt as well as covering demographics when it comes to money.

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Cash-strapped DC’ers repay 95% of earnings on personal debt - the highest in the country

A leading financial information service has revealed the ten states in America with the highest household debt per capita. Using that data with household salaries per capita, figures highlight citizens in the District of Columbia owe the most money in comparison to their annual earnings. Research also revealed that Texans are the biggest borrowers when it comes to automobiles, while the highest student loan debt was also found in Washington, DC. 

A leading website for financial information and tools has revealed the ten American states with the highest household debt per capita. Debt-to-income, a term used to indicate the ratio of borrowing when compared to annual salary, is an indication of financial health used by lenders.

Lenders prefer to see personal debt-to-income ratios smaller than 36% - implying that debt accounts for 36% of monthly outgoings. Washingtonians, on average, have a household debt-to-income ratio of 95%, the highest in the country with Californians following closely behind, borrowing the second-most in comparison to earnings with a ratio of 94%.

Popular financial website, The Economic Secretariat, used publicly available data from the Federal Reserve Bank of New York and mapped it against publicly available median household earnings data to determine in which states Americans are borrowing beyond their means.

The research revealed that Washington, DC is the district with the most household debt (nearly $90k) -- an increase of 16% in less than ten years.

Washingtonians also have the highest household debt-to-income ratio, with a figure of 0.95 indicating they have nearly the same amount of debt (95%) than their annual income can cover.

A supplementary study of 5,000 people across the country showed that almost half (45%) of Washingtonians believe that getting into debt is “somewhat necessary” to survive in modern America, with just a fifth of all citizens, 21%, reporting that they have no personal debt whatsoever.

The Top Ten States With The Highest Household Debt

The ten states with the highest household debt are:

  1. Washington, DC - $88,450
  2. Hawaii - $74,230
  3. Colorado - $73,890
  4. California - $73,400
  5. Maryland - $72,310
  6. Washington - $67,440
  7. Virginia - $66,140
  8. Massachusetts - $65,500
  9. Utah - $62,090
  10. Connecticut - $59,840

The ten states with the highest household debt-to-income ratios are:

  1. Washington, DC - 95%
  2. California - 94%
  3. Hawaii - 84%
  4. Colorado - 84%
  5. Washington - 82%
  6. Virginia - 82%
  7. Maryland - 76%
  8. Massachusetts - 75%
  9. Utah - 73%
  10. Connecticut - 69%

For the full results, click here:

In relation to the nation’s debt overall, nearly 70% of America’s debt is due to people borrowing for mortgages. Generation X (between 40 and 55 years old) are the generation with the most personal debt.

Texas is the state with the most automobile debt, with the average Texan being in $6,880 dollars worth of debt for the sake of their vehicles. Additionally, Washington, DC is home to the highest student loan debt, coming in at $13,420 per capita.

The Economic Secretariat is a pull-no-punches platform for intelligent people looking for detailed and unbiased reviews of popular companies, entrepreneurs, and online businesses.

Bridgette Norris, market researcher at The Economic Secretariat, said:

“Looking at our data, it’s no wonder why so many people are overwhelmed by debt, don’t want to talk about it, yet believe it’s a necessary part of life. We hope that arming our readers with this data can start to encourage more open conversations about finances, while busting damaging myths about money.”


  3. - Median Household Earnings by State

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Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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