Many people get caught up in credit card debt. In 2022, Americans increased their credit card debt by a record $179.4 billion. The total owed by credit-card holders now is more than $1.1 trillion.

However, people in some states charge less on their credit cards than others.

WalletHub, a personal Finance website, takes a look at the issue in “2023’s States With the Highest and Lowest Credit-Card Debts.”

WalletHub found the following for median credit-card debt in the 50 states and the District of Columbia:

States with the highest credit-card debts

       1. Alaska – $3,517

2. District of Columbia – $3,290

3. Colorado – $3,106

4. New Hampshire – $2,793

5. Vermont – $2,793

States with the lowest credit-card debts

    47. Iowa – $2,077

48. Pennsylvania – $2,439

49. Kentucky – $2,230

51. Mississippi – $2,304
52. West Virginia – $2,131

Why do people accumulate so much credit card debt?

The two major reasons are no emergency fund and lack of budgeting.

“Unexpected expenses, such as unforeseen medical or other emergencies, may push people to overextend and spend more than they can pay back in time,” Paul Obermann, an assistant professor at the Idaho State University, said in the report.

Using a credit card is one of the easiest ways to borrow Money since other loans are often not as readily available, said Obermann, adding that, however, credit-card debt is one of the worst ways to borrow since credit cards have some of the highest interest rates.

On budgeting, it should include savings and money going into an emergency fund.

“I know it is hard for many, but you must spend less than you earn so you can build a rainy-day fund that equals three to six months of expenses,” said John Pelletier, director for the Center for Financial Literacy at Champlain College.

It should cover necessities such as food, shelter, utilities, and transportation to work. About four in 10 adults don’t have a rainy-day fund.