Household Debt On The Rise As Citizens Splash Out

77% of U.S. households are in debt, according to Ramsey Solutions. New York, New Jersey, and Illinois are the three states with the highest amount of debt. One reason for this debt is the high costs many states face. For example, some states have household expenses that are almost half the amount of other states. So, what is the spending situation across the country?

Household expenses 

Residents living in Hawaii spend more on household expenses than any other state, according to a report from doxo. On average, Hawaiians spend $2,731 per month running their homes. In comparison, those in West Virginia have the lowest state spending at just $1,485 per month. Mortgages typically cost residents the most, regardless of which state they live in. A report by Forbes earlier this year revealed that mortgage payments in Hawaii, California, and New York are more than $500 per month higher than the national average. Hawaii also tops the list for spending the most on utilities, paying more than $730 per month. In comparison, the typical monthly utility bill in Idaho is just $343.71.

Luxury items

Last year, Americans spent almost $65 billion on luxury items. California has the most amount of luxury cars, with more than 28% of vehicles on the road described as ‘luxurious’. This is closely followed by New Jersey at 26.8%. Individuals living in Wyoming, Montana, and West Virginia aren’t splashing out on prestige vehicles though as each state has a market share of less than 8%. Personal apparel spending also varies considerably by state. In West Virginia, $2,735 is spent annually, but Floridians spend less than $950 per year. Jewelry is another favorite among Americans. When it comes to buying a special ring for a loved one, such as an engagement ring, residents in Vermont are willing to splash out $9,329. Meanwhile, in Washington D.C., they’ll spend $6,810 on a ring to propose with. Wyomingites spend the least at $3,406.

Food & groceries

Once again, Hawaii is the highest spender, this time on food. Hawaiians spend more than $200 more than the national average on their grocery shop, meaning they pay out $556.76 every month. In general, food costs are higher in the east and south and lower among Western states, although there are some exceptions. For example, it’s a lot cheaper to eat in the eastern state of New Hampshire where they spend as little as $183.00 per month.

Americans are a nation of spenders. Whether it’s essentials or luxuries, there are a lot of states spending in excess of the national average and this is resulting in more and more people falling into debt.