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. Scott Olson/Getty Images

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."