Map Shows States Where People Are Most Delinquent on Debt
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
Across the United States, millions of people are in debt, with some states experiencing higher rates of delinquency than others.
According to a new report from WalletHub, southern states made up the top places where Americans are most behind on their debt.
Why It Matters
U.S. households carry $18.203 trillion in debt as of 2025, according to the Motley Fool. While mortgages make up 70 percent of that, getting into delinquency can have severe consequences for your credit.
Americans may also face late fees, higher interest rates and even lawsuits as a result of their delinquency.
What To Know
The top five states with the highest delinquency rates on debt payments included Mississippi, Louisiana, West Virginia, Alabama and Arkansas.
In Mississippi, 14.3 percent of individual loans and lines of credit in the state were delinquent in the first quarter, which was the highest percentage in the country.
"They rank dead last in financial education, and surprise, they're drowning in debt," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. "The numbers don't lie, and they're ugly. Eight of the top 10 delinquent states sit below the Mason-Dixon Line."
Meanwhile, Louisiana residents were delinquent on 13.1 percent of all their individual loans and lines of credit.
Also in the top 10 were South Carolina, Delaware, North Carolina, Texas and Tennessee.
Ryan said many of the southern states facing high delinquency have low median incomes relative to the rest of the country. Residents also face banking deserts and poor personal finance education.
"Southern states dominate this list because poverty, poor education, and limited financial services create a terrible recipe for disaster," Ryan said.
WalletHub ranked the states by delinquency based on each state's proprietary user data from the first quarter of 2025.
What People Are Saying
WalletHub analyst Chip Lupo told Newsweek: "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."
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek: "Until we fix financial education at the state level, we're just putting Band-Aids on bullet wounds. This data screams that we've failed entire populations by not teaching basic money management."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "With debt delinquencies, unfortunately, there aren't many surprises in terms of which states see higher numbers. Most of them are in the Southeastern United States, where incomes, when compared to the national average, are lower, and debt can often be higher.
"When residents in these states are drowning in debt and have incomes that allow them to barely keep their heads above water, they can often make the decision to simply quit paying some amounts owed over time."
A sticker showing that American Express is accepted at a business in Chicago on February 11, 2025.
A sticker showing that American Express is accepted at a business in Chicago on February 11, 2025.What Happens Next
Across all states, individuals who fall into delinquency may face substantial long-term effects on their credit.
"Regardless of where you live, delinquencies can destroy your credit and lead to further legal action against you, so it's imperative you make your monthly payments either by taking on additional work or cutting spending," Beene said.
Financial experts encourage those in debt to focus on their smallest debt first and then work to absolve the higher amounts.
"How to dig yourself out of it? Start small, win big: Attack your smallest debt first," Ryan said. "That $200 credit card victory will fuel your fight against the $20,000 monster."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Social Security may run dry earlier than previously anticipated, trustees say
The trust funds for Social Security and Medicaid will run out of money in as little as 8 years, a shorter time frame than previously estimated, according to a report issued Wednesday by the programs' trustees. The Social Security fund will run dry in 2033, unless Congress combines the program's old-age and disability funds, in which case insolvency would arrive in 2034, the report found. A finding last year predicted Social Security would become insolvent in 2035 or 2036. Medicare's hospital insurance fund is expected to run out of money in 2033, the report said. MORE: Trump admin live updates: Trump to delay TikTok ban for 3rd time 'Social Security and Medicare are vital programs that support tens of millions of Americans across the country,' U.S. Secretary of Treasury Scott Bessent said in a statement. 'This data underscores the need for lawmakers to take action to support the long-term viability of these programs.' If Congress fails to address the projected budget shortfalls, automatic cuts will dial back Social Security benefits by 23% and Medicare hospital benefits by 11% in 2033, the report found. Roughly 66 million Americans receive medical coverage through Medicare, while 70 million people are set to receive Social Security benefits this year. The Social Security and Medicare trust funds generate revenue through a payroll tax paid by employees and employers, setting the income apart from the overall federal budget. The programs routinely spend more money than they take in through such taxes. President Donald Trump has vowed to safeguard Social Security and Medicare, even as the White House pursues spending cuts at other federal programs and agencies. The Department of Government Agency, formerly led by Elon Musk, sought to eliminate what it described as 'waste, fraud and abuse' in Social Security and Medicare. In March, the White House backed such efforts in a memo. MORE: Fed holds interest rates steady, defying Trump Last year, the Government Accountability Office, a federal agency, estimated that taxpayers lose as much as $521 billion annually to fraud, much of which occurs in entitlement programs like Medicare. The Centers for Medicare and Medicaid Services (CMS) have stopped more than $100 billion in potentially fraudulent expenditures over recent months, the agency said in a statement. Still, those possible savings make up a fraction of roughly $1.9 trillion in spending for Medicare and Medicaid in 2023, the most recent year for which data is available. 'Medicare provides essential coverage for millions of American seniors, but this year's report underscores the urgent need for serious, sustained reform to secure its long-term future,' CMS Administrator Mehmet Oz said in a statement.
Miami Herald
2 hours ago
- Miami Herald
Shark Tank's Kevin O'Leary sounds alarm on 401(k) growing problem
Many American workers understand that employer-sponsored 401(k)s are a practical and efficient way to build retirement savings, especially when employers offer matching contributions. With automatic payroll deductions, they allow workers to invest in their future without much effort. Kevin O'Leary, an entrepreneur and investor on ABC's "Shark Tank," emphasizes the importance of 401(k) plans and the financial discipline required to benefit from them. Don't miss the move: Subscribe to TheStreet's free daily newsletter However, O'Leary also issues a stark warning: Many Americans struggle to contribute meaningfully to their 401(k)s because they spend more than they earn. He describes the financial anxiety that accompanies the reality of people living paycheck to paycheck, burdened by debt, and clinging to unrealistic hopes of sudden wealth. In his words, they're "steeped in magical thinking about money," believing a lottery win or inheritance will solve everything. To break this cycle, O'Leary recommends a clear-eyed assessment of one's finances. He suggests calculating a "90-Day Number" - total income over three months minus total expenses. Related: Dave Ramsey sends strong message to Americans on Medicare If the result is positive, it is time to increase 401(k) contributions. If it is negative, that is a wake-up call to cut spending and budget smarter. Ultimately, O'Leary believes that 401(k) plans are essential, but only effective if individuals take control of their financial habits. He urges Americans to start making deliberate choices that prioritize long-term security over short-term gratification. In order to contribute a sufficient amount of one's income to 401(k) plans, it is of vital importance for Americans to stay away from credit card debt because interest payments hinder the ability to save and invest. According to the 2025 first-quarter Household Debt and Credit Report from the Federal Reserve Bank of New York, total U.S. household debt rose to $18.2 trillion. Credit card balances alone reached $1.18 trillion, representing an increase of more than 6% compared to the same period the previous year. O'Leary minces no words in his warning. "Spending too much is a disease. And credit card debt is a cancer," O'Leary wrote in his book "Cold Hard Truth on Men, Women and Money." "The first time you get a credit card bill and don't pay off the full balance, it's as if you've allowed the first financial cancer cell into your life," he added. "The compounding nature of those frightening interest rates is a monstrous thing to behold." More on retirement: Dave Ramsey offers urgent thoughts about MedicareJean Chatzky shares major statement on Social SecurityTony Robbins has blunt words on IRAs, 401(k)s O'Leary argues that credit card companies often justify their high interest rates as a safeguard against fraud or defaults, but in reality, these rates are a core part of their profit model. He believes the real earnings come from the large segment of consumers who carry a balance month to month and struggle to pay it off entirely. To O'Leary, this business strategy is incredibly lucrative - companies earning an average 16 percent return are sitting on a financial gold mine. He underscores that if an individual investor saw returns like that consistently, they would go to great lengths to defend it. In his view, credit card companies do exactly that - protecting and nurturing this high-yield system by keeping credit easy to obtain and encouraging spending behaviors that trap consumers in cycles of debt. It's not accidental. And that's the danger he wants people to wake up to. Related: Jean Chatzky sends strong message to Americans on Social Security Social Security monthly paychecks are not enough to live comfortably on in retirement, so investing in 401(k) plans is a major strategy to live a satisfying life after one's working days are over. O'Leary believes that the profit incentive for credit card companies does great harm. That significantly applies to people striving to boost their 401(k) plan values. Credit is widely available by design, O'Leary explains, pulling in overspenders into deep debt cycles where compounding interest outpaces any realistic financial return, trapping them indefinitely. He makes an analogy to bring the point home. "The real tragedy, if not the real crime, of personal overspending is that any bartender is legally bound to cut off a dangerously drunk person. But you won't see that happening in a store," O'Leary wrote. "No cashiers at Neiman Marcus or Saks are going to place their hand over your credit card and suggest you don't really need three pairs of skinny jeans, that one pair will suffice," he added. "Nope. They'll congratulate you on your 'finds' and reinforce the fact that you 'deserve to splurge.'" Related: Tony Robbins sends strong message to Americans on 401(k)s, IRAs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
2 hours ago
- Business Insider
Din Tai Fung's co-CEOs talk legacy, TikTok virality, and the art of making Americans fall in love with dumplings
For Aaron and Albert Yang, hot soup dumplings are their legacy. The two brothers are the grandsons of the founder of Din Tai Fung, the world's most recognizable dumpling chain. Now, they're the co-CEOs of the chain's North American business and the third generation to helm the family business. Din Tai Fung — or DTF, as its followers have affectionately nicknamed it — has humble origins as a small oil shop in Taiwan. The brothers' grandfather, Yang Bing-Yi, moved from mainland China to Taiwan in the 1940s and worked in a local oil company. Yang later transitioned to selling xiao long bao, or steamed pork soup dumplings. Din Tai Fung is known for those dumplings to this day — as well as for its precision. Each xiao long bao weighs exactly 21 grams and is pleated exactly 18 times before it's closed. The chain has become a global dumpling superpower, with more than 173 outlets in 13 countries, including Singapore, the UK, and Australia. There are 21 Din Tai Fung outlets in the US and Canada, including new stores in Manhattan and California's Disneyland. And for the Yangs, the dumpling business is serious business: Every Din Tai Fung outlet in North America churns out over 10,000 xiao long baos every day, the chain told BI. A duty to carry on the family business Growing up, the brothers helped out after school in their parents' first US Din Tai Fung in Los Angeles. Aaron described the outlet as "very mom-and-pop." "Our parents are immigrants to this country, and English wasn't their first language," said Aaron, 33. "I have a lot of memories of them struggling with things that come with running a business in a foreign country." Aaron said they both went to Cornell University to pursue hospitality degrees so they could take the business pressure off their parents. "It definitely felt like a duty growing up," he added. They would also go to Taiwan every summer to visit their grandfather. "When he first started the restaurant in 1972, he lived above the restaurant with his family, so he would basically go downstairs for work," Aaron said. "Even as he got older, he lived literally across the street from the restaurant so he could see the restaurant, the first original location, from his window. He always wanted to keep an eye on it, even when he was retired and his kids had taken over," he added. Like their grandfather, both men think that being a good leader requires working on the front lines. "We had a meeting about how we can improve our dish washing station, and if I didn't go to Vancouver and stand there in the dish washing station, I'd have no idea," Albert, 32, said. Albert also does product tastings every Wednesday. "There's some exciting stuff, like new menu items. But some stuff isn't exciting. Like realizing, 'We need backup string beans' or 'backup, backup string beans,'" he said. Americans love chicken, and that's a problem for Din Tai Fung These days, DTF offers casual dining. Some of its restaurants are simple in decor; others are more elaborately furnished, with red chandeliers and dark wooden accents. In its Manhattan store, a steamer of 10 xiao long baos costs $18.50. Other popular dishes, like the string beans with garlic and the cucumber salad, cost $17 and $9, respectively. When I asked what their biggest challenge is in terms of consumer tastes in the US, their answer was immediate. "The No. 1 protein in the US is chicken. I think a lot of our American diners might be surprised if they find out that Taiwan doesn't even sell chicken fried rice," Albert said with a laugh. Taiwanese customers, he said, have a pork-heavy palate. "There are a lot more dietary restrictions in the US, which make the dining culture a little bit different compared to the original stores in Taiwan," Albert said. "In the years that I've been here, we did chicken wontons, and now the chicken xiao long baos too. "We added a beef item, and also vegan wontons," he added. The TikTok effect While Din Tai Fung doesn't have an official TikTok, videos of customers dining on its crunchy cucumber salad and biting into its oozing chocolate dumplings have regularly gone viral on the platform. Other popular customer videos highlight chefs rolling out dumpling dough in open-plan kitchens and diners digging into wooden dumpling trays. The cucumber salad, served in a neatly stacked pyramid of cucumber slices drenched in sauce, has even spawned a legion of TikTok videos devoted to copying the recipe. "We've been lucky with TikTok, we don't have our own TikTok account," Albert said. "I think our level of execution provided us some opportunity to get lucky on TikTok, and we really blew up on it. But it was all organic," he said. The CEOs said Americans, particularly younger customers, love Din Tai Fung's chocolate xiao long baos. While the brothers, who are based in California, have tailored the menu to suit Western palates, they say there's a limit. "We'll get the occasional comment of, 'Why don't you guys do like a cheeseburger soup dumpling or something?'" Aaron said. "I'm sure we would sell a lot of, I don't know, cheeseburger, dumplings, or Chinese chicken salad, or orange chicken items that Americans are used to seeing and eating," Albert added. But he said Americans, particularly those in major metropolitan cities, were craving authentic experiences, and so sticking to original recipes was important for them. "We just pride ourselves on trying to carry on this tradition and just staying true to our roots," Albert said.
