Individual delinquency may result from simple forgetfulness or uncontrollable issues, but a state’s high percentage of delinquency suggests that its citizens are generally having financial difficulties. WalletHub examined proprietary user data from Q1 2026 for all 50 states to identify the areas where consumers are most struggling to pay their debts.
WalletHub took into account both the percentage of residents’ total loan balances that were past due as well as the percentage of individual tradelines that were past due.
Being behind on debt payments is known as delinquency, and it can have detrimental effects on your credit. Delinquency can result in late penalties, higher interest rates, account closure, and possibly legal action. Late payments are documented on your credit report for seven years.
| Overall Rank | State | Total Score | Percentage of Tradelines Delinquent in Q1 2026 | Percentage of Loan Balance Delinquent in Q1 2026 |
|---|---|---|---|---|
| 1 | Mississippi | 100.00 | 13.76% | 13.64% |
| 2 | Louisiana | 84.02 | 12.20% | 12.92% |
| 3 | Arkansas | 63.31 | 11.24% | 10.49% |
| 4 | West Virginia | 62.44 | 10.94% | 10.76% |
| 5 | Alabama | 61.42 | 11.41% | 9.90% |
| 6 | South Carolina | 55.67 | 11.24% | 9.09% |
| 7 | Delaware | 55.64 | 11.12% | 9.25% |
| 8 | North Carolina | 55.63 | 11.60% | 8.58% |
| 9 | Tennessee | 50.40 | 10.62% | 9.01% |
| 10 | Texas | 49.37 | 10.54% | 8.93% |
The largest debt delinquency issue is in Mississippi. In the first quarter of 2026, the state had the highest percentage of delinquent individual loans and credit lines in the nation—roughly 13.8%. Mississippi leads the nation in the proportion of past-due accounts, but to get the whole picture, it’s crucial to consider the total amount of past-due debt as well. In actuality, Mississippi residents are behind on more than 13.6% of their total debt when all the monetary amounts are totaled. Additionally, that is the nation’s highest percentage.
With 12.2% of all individual loans and credit lines outstanding, Louisiana is the second-most delinquent state. In terms of dollar quantities, citizens in Louisiana have the second-highest rate in the nation—12.9% of their total debt is past due.
Overall, Arkansas has the third-worst debt delinquency issue. 11.2% of the state’s individual loans and credit lines were past due as of the first quarter of 2026. These past-due accounts account for 10.5% of the total debt owed by Arkansans.
“Being delinquent on debt can lead to fees, credit score damage, increased interest rates and other negative repercussions,” said Chip Lupo, said WalletHub Analyst. “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.”
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