Jul.31, 2017

Who Has the Worst Spending Habits, State Governments or State Residents?

New Research Suggests Most Americans Are Thriftier than their Leaders – Except One State. You'll Never Guess Which One.

FORT LAUDERDALE, FL – You might think financially savvy Americans would vote for financially savvy candidates. A Debt.com analysis shows that’s almost never true. Only one state achieved equilibrium: Nevada, the state that touts gambling and partying. The state ranked 14th, while its residents ranked 13th for personal financial responsibility.

The Top 10 states with the healthiest finances have residents with some of the worst personal finances. For instance, Tennessee ranks No. 8 in the nation for fiscal state responsibility, but its residents’ “consumer credit rank” is 44th. Likewise, Connecticut residents ranked No. 1 in Lending Tree’s credit score survey – but the state itself limped into 37th place in the George Mason study on states fiscal responsibility.

“The results showed one thing had little to do with the other. Some states in great fiscal shape have residents with about average credit. States in the worst shape are a big mix of the best and worst borrowers, and some in between. Most red states were less in the red than their residents, while many blue states had residents in the black,” says Howard S. Dvorkin, CPA and Chairman of Debt.com.

To see how the states compare to one another, read Debt.com’s post “How Well Does Your State Manage Money.”  Debt.com crunched two sets of numbers: the Mercatus Center at George Mason University which tallied how well state governments spend money and pay debts and Lending Tree’s rank of state residents’ credit scores.

It is important to note that some states are at the top because of temporary advantages, not necessarily good budgeting. Oil and gas resources prop up some states, but that probably won’t last forever. Florida has the first-place position which demonstrates that fiscal discipline is possible even with a relatively larger population and higher pension costs that arise from an aging population.

About Debt.com: Debt.com is the consumer website where people can find help with credit card debt, student loan assistance, credit monitoring, tax debt, identity theft, credit repair, bankruptcy, debt collector harassment and more. Debt.com works with only vetted and certified providers that give the best advice and solutions for consumers ‘when life happens’.

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Debt.com: Michelle Bryan

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