Household Debt In Idaho & Utah Is Surging This Year

Recently, Idaho and Utah have seen notable changes in household debt, as highlighted in a WalletHub report. Understanding these shifts is crucial for residents who want to manage their finances effectively.

Idaho's Debt Increase

Idaho ranks ninth in the nation for household debt increases. From the second to the third quarter of 2024, the average household debt in Idaho rose to $187,863, up by $798. This contributed to a total debt increase of $539 million statewide. The rise in debt is driven by many residents relying more on credit to cover everyday costs as prices continue to climb. Those who live here feel it with home prices, rent, and gas rising.

Idaho residents, this means a need to be cautious with their finances. Higher debt levels can strain budgets and potentially lower credit scores, affecting future financial opportunities. Idahoans need to maintain good financial practices, such as sticking to a budget and seeking financial advice when necessary.

Utah's Debt Situation

Utah, on the other hand, ranks fourth in the country for debt increases. The average household debt reached $236,197, with an increase of $1,004. The total household debt in Utah rose by over $1 billion. Similar to Idaho, the debt rise in Utah can be attributed to increased reliance on credit amid inflationary pressures.

Implications and Moving Forward

Idaho and Utah face similar challenges with rising household debt, driven by economic factors such as inflation and increased cost of living. Residents in both states should focus on sound financial habits to navigate these changes. This includes budgeting effectively and being mindful of spending to ensure financial stability.