Pennsylvania Residents Are Carrying $10,000 More Debt Than a Decade Ago

Personal debt has climbed steadily across the United States over the past ten years, but new data shows Pennsylvania residents have experienced a notable increase of their own. A recent study analyzing per capita debt growth across all 50 states found that while Pennsylvania does not rank among the fastest-growing states for debt, the average resident now carries thousands of dollars more than they did a decade ago.

The research, conducted by Debt Relief Karma, analyzed government data to identify where personal debt has grown the most over both five-year and ten-year periods. The findings highlight how long-term borrowing trends continue to reshape household finances, even in states with more moderate growth.

Pennsylvania’s Debt Increase Over the Past Decade

According to the study, Pennsylvania ranks 38th nationally for the percentage increase in personal debt between 2013 and 2023. During that period, per capita debt in the state rose by 26.52 percent.

In practical terms, that increase translates to a significant dollar amount. The average Pennsylvanian carried $38,540 in debt in 2013. By 2023, that figure had risen to $48,760. That is an increase of $10,220 per resident over ten years.

While Pennsylvania’s percentage growth is lower than many other states, the added debt still represents a meaningful shift in household financial obligations, particularly as costs for housing, transportation, and everyday essentials have also increased.

How the Data Was Analyzed

The study examined state-level household debt data from the Federal Reserve Bank of New York, covering all 50 states. Researchers reviewed per capita debt figures from three points in time: the fourth quarter of 2013, 2018, and 2023.

By comparing average debt levels and employment figures for workers during those years, the analysis calculated both percentage growth and absolute dollar increases per resident. This approach allowed the study to highlight states where debt grew fastest, as well as states where residents experienced the largest raw increases in borrowing.

States Seeing the Sharpest Debt Growth

While Pennsylvania’s increase was relatively moderate, several states experienced far more dramatic growth over the same period.

Utah ranked first nationally, with per capita debt rising 59.43 percent over the decade. Average debt there jumped from $50,330 in 2013 to $80,240 in 2023, an increase of nearly $30,000 per resident.

Texas followed closely behind with a 59.10 percent increase. Per capita debt in the state rose by $21,010, reaching $56,560 in 2023.

Idaho, Colorado, and Nevada rounded out the top five states for debt growth. Colorado stood out for having the largest absolute increase in the country. Average debt per resident rose by $30,890, bringing the state’s per capita debt to $90,760, the highest level recorded in the study.

These states have experienced rapid population growth, rising housing costs, and increased reliance on credit, all of which likely contributed to the sharp increases.

What Pennsylvania’s Numbers Reveal

Pennsylvania’s lower ranking does not mean residents are unaffected by debt pressures. A $10,220 increase per person still places added strain on household budgets, especially for middle-income families.

The data suggests that Pennsylvania’s debt growth has been steady rather than explosive. Slower population growth and more moderate housing appreciation compared to states like Utah or Colorado may help explain the difference. Even so, debt levels have continued to climb year after year.

For many households, this debt includes a mix of mortgages, auto loans, student loans, and credit card balances. As interest rates have risen in recent years, carrying higher balances has become more expensive, increasing monthly financial stress.

Expert Insight on Managing Rising Debt

Andriy Nezdropa, CEO of Gravis Group and founder of Debt Relief Karma, said the findings point to a broader issue facing households nationwide.

“For those in extreme debt, it can sometimes feel like there is no way out,” Nezdropa said. He emphasized that many people skip one of the most important steps in managing debt: building a clear picture of their finances.

Nezdropa recommends creating a detailed budget that tracks all income and expenses. This process helps identify spending patterns and potential areas to cut back before balances grow further.

Strategies That Can Help Reduce Debt Pressure

Debt consolidation may be an effective option for households managing multiple high-interest balances. By combining debts into a single loan with a lower interest rate, borrowers can reduce monthly payments and potentially save a substantial amount on interest over time.

Nezdropa also stresses the importance of emergency savings, even while paying down debt. A small emergency fund of $1,000 can help prevent households from relying on credit cards when unexpected expenses arise.

After establishing that buffer, focusing extra payments on the highest-interest debts while continuing minimum payments on other accounts may help reduce balances more efficiently.

Debt Growth Is Reshaping Household Finances in Pennsylvania

The steady rise in personal debt becomes more concerning when it outpaces wage growth and inflation. As borrowing costs increase, households carrying higher balances have less financial flexibility and face added pressure during economic slowdowns.

For Pennsylvania residents, the data shows how incremental increases can quietly reshape household finances over time. Even moderate growth adds up when balances rise year after year.

Experts warn that without proactive planning, higher debt levels can limit long-term financial stability. Structured repayment strategies and professional guidance may help households regain control before debt becomes harder to manage.

This article first appeared on Cents + Purpose.