Household debt in Utah rising at one of the fastest rates in the nation, report finds
Dec 11, 2024, 5:54 PM
FILE - A canning jar filled with money sits on a shelf in East Derry, N.H., June 15, 2018. (AP Photo/Charles Krupa, File)
Credit: ASSOCIATED PRESS
(AP Photo/Charles Krupa, File)
SALT LAKE CITY — A new report found Utah has one of the fastest-growing rates of household debt in America.
WalletHub analyzed data from both TransUnion and the Federal Reserve. Analysts found between the second and third quarters of 2024, Utahns added more than $1 billion in household debt.
The average Utah household added more than $1,000 of debt. That’s higher than any household in every state except Colorado, California and Hawaii.
DMBA Certified Financial Planner Shane Stewart said it’s not surprising in some ways. Especially considering how expensive it is to rent or buy a home here.
Stewart said when people have to pay more for housing, it takes money away from other necessities like food, and those prices are up too.
“To get into a home or get into rent, that’s money you’re not using for gas or groceries.”
According to Stewart, those struggling with debt should start by looking at their expenses and income side-by-side and make necessary changes.
“You don’t have to be a militant budget keeper,” he said. “Just seeing it helps you self-regulate.”
Stewart also suggested Utahns put money towards emergency savings each month. They should save enough to cover three to six months of their total expenses.
He said even if you can’t reach that full amount, set aside something. Even small amounts can help limit or prevent more debt from forming.
“I’ve never met someone who if they’ve honestly looked at their expenses couldn’t find something that they could cut back on or trim just a little,” said Stewart. “And, to their surprise, its not as painful as they thought it would be.”
