Wisconsin residents’ debt-to-income ratio was 11th lowest among U.S. states in 2024, a new Forward Analytics report shows.
The research organization, part of the Wisconsin Counties Association, yesterday issued its “Badgers on a Budget” report, which explores household finance trends in the state and compares them to the rest of the country. It hinges on the Federal Reserve’s debt-to-income ratio, which includes household income and most types of consumer debt with the exception of student loans.
The state’s ratio was 1.202 in 2019, which was 12th lowest in the country. Its slight dip to 1.198 by 2024 was “near the average” decline for the period, the report shows, and made it the 3rd lowest ratio in the Midwest region for that year.
“Despite the financial impacts of the pandemic, Wisconsin households seem to have continued being financially responsible,” wrote author Kevin Dospoy, deputy director of Forward Analytics.
Between 2019 and 2024, per capita auto loan debt in the state rose 14.3% from $4,000 to $4,570. That’s a smaller increase than the national average but higher than all other bordering states except for Michigan, which saw a 25% increase — the largest in the country for the study period.
The report shows the state’s per capita auto loan debt last year was the 7th lowest in the country. Still, Dospoy notes 3.5% of all auto loan debt was delinquent in the state last year, a “significant increase” from 2.7% in 2019.
Meanwhile, per capita credit card debt in the state increased 18.1% from $2,770 to $3,270 over the same period. But at the same time, households in the state reduced their credit card balances relative to other states, going from the 11th lowest for this measure to 7th lowest. And the state’s credit card debt 90-day delinquency rate last year, 7.6%, was the lowest rate in the country. The national average was 11.2%.
The report also shows the state’s median mortgage payment was $1,245 at the end of 2024, the 10th lowest in the country and 3rd lowest among bordering states. The typical mortgage payment in the state was about 19.8% of household income for the year, the second lowest in the country after Vermont with 18.9%.
“In terms of financial impacts that can be controlled by individual households, such as the amount of personal debt, Wisconsinites fare quite well, especially relative to neighboring states,” Dospoy wrote. “As the cost of housing and most goods and services remain high, residents of the Badger state will likely continue to exercise their frugality and financial caution.”
See the report.
