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Study: Arizona ranks 36th for money management

Posted: 4:57 PM, Jan 14, 2016
Updated: 2016-01-15 11:13:08-05

Lose the Powerball? Bummer. Maybe now's the time to get serious about funding your future.

When it comes to managing money, Arizonans are, well, pretty poor at it.

A new report from creditcards.com ranks us 36th in the nation. When it comes to credit score, we're even lower. 38th out of the 50 states and Washington, D.C.  

The study shows the average Arizona resident is carrying around $4,444 in credit card debt.   The median household income in Arizona is $49,165.

Matt Schulz, creditcards.com's senior industry analyst said more income doesn't mean less debt. Some states with lower average household incomes are some of the best when it comes to managing money.

"The main takeaway is that good financial habits like paying your bills on time and keeping your debts low are what build a solid credit score, not how much money you earn," Schulz said.

The Federal Reserve raised the interest rate in mid-December from a range of 0% to 0.25% to a range of 0.25% to 0.5%.  It's supposed to be the first of a few increases this year. Credit cards debt is one area where you see a change according to bankrate.com .

"The areas where you have to pay attention are credit cards, home equity lines of credit and adjustable rate mortgages," said Greg McBride, Chief Financial Analyst at bankrate.com . "Those are very closely tied to short term interest rates and they will move up in response to whatever action the fed takes.

McBride suggests paying down variable rate debt or refinancing that debt into a fixed interest rate.

Click to see how all states ranked in the money managing study.