Americans who fall behind on debt payments can face serious financial consequences, from damaged credit scores to higher interest rates – and new analysis by WalletHub suggests that these challenges are particularly widespread in several Southern states.
Using proprietary user data from the first quarter of 2026, WalletHub ranked all 50 states based on two measures: the percentage of individual loans and credit accounts that were delinquent and the share of residents’ total loan balances that were past due.
Mississippi leads nation in debt delinquency
By the numbers:
According to the data, Mississippi recorded the highest debt delinquency rates in the country. Approximately 13.8% of individual loans and lines of credit in the state were delinquent during the first quarter of 2026.
When measured by dollar amount, more than 13.6% of Mississippi residents’ total debt balances were delinquent, also the highest rate nationwide.
In this photo illustration the Visa, Mastercard and American Express logos are seen on credit and debit cards. (Credit: Matt Cardy/Getty Images)
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Louisiana ranked second on the list. Residents were delinquent on 12.2% of individual loans and credit lines, while 12.9% of the state’s total debt balances were past due.
Arkansas placed third, with 11.2% of loans and credit accounts reported as delinquent. Those overdue accounts represented 10.5% of the total debt owed by Arkansas residents.
What they’re saying:
“Being delinquent on debt can lead to fees, credit score damage, increased interest rates and other negative repercussions,” Chip Lupo, an analyst at WalletHub, said in a statement. 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.”
States most delinquent on debt payments
1. Mississippi
2. Louisiana
3. Arkansas
4. West Virginia
5. Alabama
6. South Carolina
7. Delaware
8. North Carolina
9. Tennessee
10. Texas
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See the full report here.