Thursday, June 19, 2025

Money Matters - States Where People Are Most Delinquent On Debt

 American households are carrying around $18.2 trillion in debt, and the personal-finance website WalletHub has just released its updated report on the States Where People Are the Most Delinquent on Debt to show where individuals are at the greatest risk of credit score damage and other financial consequences.


To identify the areas where people are struggling most with their debt, WalletHub analyzed proprietary user data from Q1 2025 across all 50 states, taking into account both the percentage of individual tradelines that were delinquent and the share of residents’ total loan balances that were delinquent.
 
Most DelinquentLeast Delinquent
1. Mississippi41. California
2. Louisiana42. Massachusetts
3. West Virginia43. Illinois
4. Alabama44. Wyoming
5. Arkansas45. Wisconsin
6. South Carolina46. Colorado
7. Delaware47. Washington
8. North Carolina48. Montana
9. Texas49. Utah
10. Tennessee50. Iowa
 
For the full report and to see where your state ranks, please visit:
https://wallethub.com/edu/states-where-people-are-the-most-delinquent-on-debt/136191

 

“Being delinquent on debt can lead to fees, credit score damage, increased interest rates and other negative repercussions. That’s why it’s important to get current as quickly as possible. For many types of debt, you will have at least 30 days after your due date to make your payment before the lender officially reports it as ‘late’ to the credit bureaus. Many lenders also offer hardship programs that can allow you to temporarily forgo payments due to financial difficulty.”

“Mississippi has the biggest debt delinquency problem, with around 14.3% of individual loans and lines of credit in the state delinquent in Q1 2025, the highest percentage in the country. When all the dollar amounts are added together, Mississippi residents are delinquent on nearly 13.1% of their overall debt, the highest percentage in the country.”

- Chip Lupo, WalletHub Analyst  

 
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