Nevada Leads Nation in Household Debt Loads (Image Credits: Unsplash)
Nevada – Residents here shoulder the fifth-highest average credit card debt in the nation, fueling discussions around President Donald Trump’s proposal to limit rates at 10 percent.[1][2]
Nevada Leads Nation in Household Debt Loads
Households in Nevada averaged $12,832 in credit card debt, according to a recent WalletHub study. That figure placed the state fifth nationwide, behind only New Jersey, Connecticut, Maryland, and Alaska.[2]
The total statewide burden reached about $13.7 billion. Nationally, credit card balances hit $1.2 trillion, with the typical American carrying roughly $6,500.[1] Current interest rates hovered around 28 to 30 percent for many borrowers, exacerbating the strain amid ongoing economic pressures.
Delinquency rates mirrored those from the Great Recession era, even as the labor market remained relatively strong, data from the Federal Reserve Bank of St. Louis showed.[1]
Trump’s Proposal Targets Soaring Rates
President Trump announced plans to cap credit card interest rates at 10 percent, aiming to ease the burden on consumers nationwide. The idea gained traction as debt levels surpassed pre-2008 financial crisis peaks.[1]
Supporters viewed the measure as a direct response to affordability challenges. Assemblymember Lisa Cole, a Republican representing Clark County District 4, welcomed the attention to the issue but cautioned against rushing into policy changes.
She highlighted a “vicious circle” where high debt and delinquencies threatened broader economic health, potentially leading to more bankruptcies and steeper future borrowing costs.[1]
Experts Highlight Risks of Rate Limits
Dr. Stephen Miller, research director at the University of Nevada, Las Vegas Center for Business and Economic Research, warned that a 10 percent cap could shrink credit availability. Banks might deem cards unprofitable without higher rates to offset risks and lost compounding revenue.
Such restrictions threatened consumer spending, which accounted for 67 percent of U.S. gross domestic product. Reduced access could slow economic growth, he argued.[1]
- Credit issuers could raise minimum credit scores and cut limits for new applicants.
- Higher-risk borrowers might face outright denials.
- Overall lending tightened, pushing some toward unregulated alternatives.
Matt Hennessy, a Las Vegas mortgage advisor, compared the cap to risky pre-2008 lending practices. He predicted banks would eliminate risk-based pricing, leading to stricter underwriting across loans, including autos and homes.
Broader Economic Ripples and Homeownership Hurdles
Hector Amendola, president of Panorama Mortgage Group in Las Vegas, described credit card debt as a stealthy wealth transfer. It prevented many from saving for homes, with first-time buyers now reaching a median age of 40.
This delay meant lost opportunities for equity buildup over decades. Unsecured debt like credit cards posed less systemic risk than mortgages but still eroded financial stability for individuals and families.[1]
| Metric | Nevada | National Average |
|---|---|---|
| Avg. Household Debt | $12,832 | $6,500 |
| Total Debt | $13.7B | $1.2T |
| Current Rates | 28-30% | 28-30% |
| Proposed Cap | 10% | 10% |
Key Takeaways:
- Nevada ranks fifth in average credit card debt, far above the national figure.
- A rate cap offers short-term relief but risks reduced credit access for many.
- Experts urge caution to avoid pushing borrowers to costlier options.
While the proposal promised immediate savings, its long-term effects remained uncertain. Policymakers weighed consumer protection against market dynamics. What impact would a rate cap have in your household? Share your thoughts in the comments.
