Credit Card Limits Aren’t Keeping Up — and It’s Hurting People in These States

Credit card debt isn’t just about how much you owe. What matters is how close you are to your credit limits—and how hard it is to pay that debt off with the income you have.

We looked at real data from people actively seeking debt relief and created a Credit Pressure Index to get a better idea of their financial stress. The index combines how much credit people are using, how much of their income goes toward debt, and how much credit they actually have.

The typical numbers vary quite a bit depending on where you live. In some states, people have a fairly reasonable amount of debt compared to their credit limits and income. But we also found a few states where residents are under serious credit card pressure.

What Creates Credit Card Pressure?

Your credit utilization, debt burden, and credit limit all play a part in how much credit card pressure you feel. These are the factors we used to calculate our Credit Pressure Index. Here’s how each of them works.

Credit utilization

Credit utilization is the percentage of your available credit currently in use. For example, say you have one credit card with an $9,000 balance and a $10,000 credit limit. Your credit utilization is 90%.

When you have high credit utilization, you don’t have much spending power left on your credit cards. In the example above, you’d be left with $1,000 you could spend before hitting your credit limit. 

Utilization is one of the most important credit score factors, and high utilization can hurt your score. People with high utilization are statistically more likely to miss a payment or default on their debt. The credit bureaus understand that once you’ve run out of spending power, you might have a hard time handling the next financial emergency that comes along. 

Debt burden

Debt burden is the ratio of your credit card balance to your disposable income. A higher percentage generally means more financial strain.

Debt burden provides a more accurate idea of how hard it'll be to pay off credit card debt than just the balances alone. A $5,000 balance may be manageable for someone who takes home $10,000 per month, but not for someone who makes $2,500.

Credit limit

A credit limit is the maximum amount that can be spent on a credit card. In this case, a higher number is better and can be a sign of less financial strain. With a low credit limit, even a modest amount of debt could cause a drop in your credit score.

When you have a high credit limit, you can spend more without worrying about maxing out your credit card or hurting your credit. You probably don’t want to spend money just because you have the credit for it, but you have more flexibility to spend when necessary.

States Under the Most Credit Card Pressure

Kentucky, Alabama, and Arkansas top our Credit Pressure Index as of April 2025. That doesn’t mean people in these states have the highest credit card balances. In fact, debt relief seekers in several other parts of the country carry bigger balances on their credit cards.

But residents of these states have high balances compared to their credit limits. In Kentucky, the average credit card balance is just under $13,000. The average estimated credit limit is $16,355. The typical cardholder looking for debt relief is already using nearly 80% of their credit. With that kind of utilization, any big expense puts you at risk of maxing out your credit cards. You might also be unable to afford to pay for something you need.

Adding to the pressure is that incomes tend to be lower in these states. All three are in the bottom 10 by median income. Debt takes up a larger share of a person’s disposable income in these states than it would in other areas where wages are higher.

States With More Credit Card Flexibility

New York, Connecticut, and Massachusetts had the lowest credit card pressure as of April 2025. Their credit card balances are on the high side, but they make up for that with larger credit limits and salaries, so residents aren’t under nearly as much financial strain.

For example, debt relief seekers in Massachusetts might seem to have a lot of debt at a glance, with an average balance of $18,845. But the average estimated credit limit is $32,617, meaning credit utilization is about 58%. The average debtor still has nearly $14,000 in available credit—more than enough for most emergencies or to pay the bills.

Massachusetts is also one of the top five states in terms of median income. Even though people carry more credit card debt, it’s less of a burden because of their disposable income.

What to Do if Your Credit Cards Are Maxed Out

If you’ve hit the limit on your credit cards, or you’re getting close, here’s what you can do to fix it.

Step back and assess

The first step is some quick information gathering. Pull up all your credit card accounts and make a note of the balances and credit limits. If you’ve maxed out your credit cards, then the balances and limits would be about the same.

Next, look at your income, and check how much you’ll have left over after paying your monthly bills, including your credit card minimum payments. You can use this information to figure out how quickly you’ll be able to pay down your credit cards.

Find support if needed

Living with high credit card balances is often stressful, and the interest is costly. If your credit card balances are causing financial difficulties, you have options. 

One is to ask your credit card issuers for a credit limit increase. Card issuers are sometimes willing to raise your credit limit, especially if you’ve always paid on time. A higher limit could give you more breathing room. 

Note that asking for a credit limit increase only makes sense if:

• Your high balance was due to an expense that was out of your control

• You can afford to pay down your debt, and

• You have a reason to need a better credit score right now

A higher credit limit could make your situation worse if you’re not sure how your balance grew so much in the first place, or if you’re already struggling to keep up.

You could also try debt consolidation, where you apply for a loan to pay off your credit cards. Consolidating your debt could make sense if you qualify for an interest rate that’s lower than what you currently pay. 

Consolidating doesn’t get rid of your debt. It only moves it to a new loan. Once you use the loan to pay off your cards, you might be tempted to use the cards again. If you do, you could make your debt situation worse. Consider closing your credit card accounts while you pay down the loan.

If you have a financial hardship and your debt has become overwhelming, you may want to explore debt relief. A debt relief company could help you negotiate a debt settlement with each of your unsecured creditors. Settling a debt means that the creditor agrees to accept less than the full amount you owe, but consider it payment in full. Debt relief could help you take control of your debt while paying what you can afford, so you can get on the road to a better financial future.