Debt can be a significant source of stress and anxiety for many Americans, but just how much debt can Pennsylvanians handle before feeling financially overwhelmed? A recent study by the personal finance website, Well Kept Wallet, sought to answer this question by calculating a ‘debt anxiety index’ for each state based on respondents’ personal debt anxiety threshold. The study found that the average Pennsylvanian has a higher debt anxiety threshold than the national average, but where does their threshold rank compared to other states? Let’s dive into the study’s findings.
Well Kept Wallet surveyed 3,000 respondents from across the country and found that the average Pennsylvanian has a debt anxiety threshold of $23,256, which is higher than the national average of $22,514. This finding suggests that Pennsylvanians are more financially resilient or have a higher tolerance for debt than the average American. However, when compared to other states, Pennsylvania ranks 18th for its debt anxiety threshold.
What’s interesting is that the state with the lowest debt anxiety threshold turned out to be South Dakota, where residents start feeling financially flustered when their debts total only $4,000. In contrast, Delawareans have the highest debt anxiety threshold, with the ability to endure debts rising up to a hefty $41,667! Wyoming, Hawaii, Idaho, and New Mexico also made it to the top 5 states with the highest debt anxiety thresholds.
Why is there such a significant difference in debt anxiety thresholds between states? It could be attributed to a variety of factors, such as income levels, cost of living, and cultural attitudes toward debt. For example, Delaware has a higher median income than other states, which could explain why its residents can tolerate higher levels of debt. On the other hand, South Dakota has a lower cost of living than most states, which could explain its lower debt anxiety threshold.
It’s worth noting that the study only looked at non-mortgage debt, which means that the findings may not reflect overall levels of financial stress or debt levels. Mortgage debt is a significant source of debt for many Americans and could impact their overall debt anxiety threshold. Additionally, personal factors such as job security, health, and family obligations can also influence someone’s comfort with debt.
Overall, the study’s findings suggest that Pennsylvanians have a higher debt anxiety threshold than the national average, but where they rank compared to other states can vary significantly. It’s important to note that everyone’s relationship with debt is unique, and what may cause anxiety for one person may not affect another. However, understanding our individual debt anxiety thresholds can help us make informed financial decisions and manage our debts more effectively.
This article is intended for informational, entertainment or educational purposes only and should not be construed as advice, guidance or counsel. It is provided without warranty of any kind.