Louisiana Household Debt May Now Be On The Rise

In 2024, the total national household debt in America reached $17.9 trillion. In some states, households have added hundreds of millions of dollars of debt in just a quarter. Is Louisiana among them?

Get our free mobile app

Louisiana Takes it Slow

According to a new study from WalletHub, Louisiana is among the top five states where the average household debt has grown the least over the last quarter. On average, Louisiana households added only $418 from spring to fall.

The average household debt in Louisiana sits at $98,308, placing the state as the 5th state with the lowest average. In total Louisiana sits at $159,031,844,650 in household debt across the state, that's $130 trillion more than the State of Louisiana's debt as a state and local government (at the time of publication).

Debt and Delinquency

An increase in household debt can be a warning sign that people and families are struggling financially, putting themselves further into debt to make ends meet. But as WalletHub analyst, Chip Lupo explains an increase in debt is not a telltale sign of financial struggle, "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..."

It seems hard to pinpoint exactly why Louisiana households have managed to hold off on increasing their debt when Louisiana has a higher auto loan interest rate than most other states or when the Commissioner of Insurance admits that there is an insurance crisis in the state. The answer may lie in Louisiana's delinquency on loan payments, which are on average some of the highest in the country.