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By Billal Rahman
Immigration Reporter
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Amid persistently high interest rates and elevated living costs, a new report from WalletHub reveals a rise in credit card delinquencies across the United States, comparing data from the first and second quarters of 2025.
Why It Matters
Credit card delinquency occurs when an account holder fails to make at least the minimum payment by the due date, and the account becomes past-due, which is generally 30 days or more late.
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The study shows which states are seeing the sharpest increases in missed payments, and which ones are managing to keep delinquencies relatively low.
U.S. households collectively carry about $18.6 trillion in total debt, according to the latest data from the Federal Reserve Bank of New York.
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What To Know
Leading the nation is Minnesota, which recorded the highest jump in credit card delinquencies, up roughly 32.88 percent from the previous quarter. About 19.17 percent of the state’s credit card accounts were delinquent in the second quarter, according to the data. Minnesota’s high overall debt levels make households more vulnerable when economic pressures rise, particularly with persistent inflation and higher interest rates.
Source: WalletHub
Coming in second is Iowa, where delinquencies increased by approximately 31.53 percent. Although the state’s average credit card debt is relatively low, its weaker economic performance appears to have contributed to the rise.
About 14.36 percent of credit card accounts in Iowa were past due in the second quarter of 2025, indicating increasing pressure on household finances.
In third place is Kansas, which recorded a 30.22 percent quarter-over-quarter increase in delinquencies. The state has one of the lowest median credit card debt levels in the country, suggesting that the uptick may be linked more to overall financial tightening than to high borrowing levels.
South Dakota ranks fourth, with a 29.92 percent increase and an estimated 20.64 percent of credit card accounts classified as delinquent in Q2. The state’s smaller economic base and limited financial reserves could be factors contributing to consumers’ vulnerability to higher living costs.
Rounding out the top five is Ohio, where delinquencies rose by 28.65 percent during the same period. Approximately 19.66 percent of accounts in the state were reported as delinquent, reflecting the broader effects of elevated interest rates and modest wage growth.
At the other end of the scale, several states experienced comparatively smaller increases in delinquency rates. Florida recorded the lowest growth at 14.79 percent, followed by Vermont at 16.57 percent, Wyoming at 16.93 percent, Alaska at 18.32 percent, and California at 18.52 percent. These states’ slower growth rates may be associated with stronger local economies, lower household debt levels, or more resilient labor markets.
Persistent inflation and higher living costs have contributed to rising financial pressures on households. White House economic policies, including tariffs on imported goods and trade-focused measures, were designed to protect U.S. industries and encourage domestic production. Supporters argue these policies could benefit the economy in the long term, but critics contend they have contributed to higher consumer prices, particularly for everyday goods.
What People Are Saying
Kurt S. Altrichter, a wealth advisor told Newsweek: "Look, hoping the bonus check in December fixes it isn’t a plan. Waiting for your tax refund is also a terrible plan. I’ve watched too many owners freeze up because they’ve never actually opened all the statements in one sitting. So here’s what I made this guy do last Thursday. Same thing I’d say to any of you. Grab a legal pad. List every card, balance, rate, minimum. Takes 20 minutes, hurts like hell, but until the math is staring back at you, nothing changes."
Chip Lupo, WalletHub analyst, said in a statement: “Long-term credit card delinquency can lead to large drops in your credit score, so it’s imperative to get your account current as quickly as you can. The good news is that if you manage to get current before 30 days have passed, your delinquency will not be reported to the credit bureaus. If you’ve been delinquent for a significant period of time, there are other strategies you can pursue in order to get back on track, such as hardship programs, strategic budgeting, and consolidating debt.”
Update, 11/11/25, 03:30 a.m. ET: This article was updated with comment from Kurt S. Altrichter.
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