Thursday, July 18, 2024

Louisiana Ranks second Among States with Highest Debt Delinquency, WalletHub Study Finds

by BIZ Magazine
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Louisiana residents are facing significant challenges in managing their debts, ranking second among U.S. states for debt delinquency, according to a new report by personal-finance website WalletHub. The study, which analyzed proprietary user data from the first quarter of 2024, highlights areas where people are most at risk of credit score damage and other financial repercussions due to delinquent debts.

WalletHub’s analysis considered both the percentage of individual tradelines that were delinquent and the percentage of residents’ total loan balances that were delinquent. Louisiana’s figures were striking, with 11.59% of tradelines and 10.01% of loan balances reported as delinquent in Q1 2024. These statistics place Louisiana just behind Mississippi, which has the highest delinquency rates in the nation.

“Being delinquent on debt can lead to fees, credit score damage, increased interest rates, and other negative repercussions,” said Cassandra Happe, a WalletHub analyst. “It’s crucial for individuals to get current on their payments as quickly as possible. Many lenders offer hardship programs that can provide temporary relief in times of financial difficulty.”

Mississippi topped the list with around 12.7% of individual loans and lines of credit delinquent and 10.9% of the total debt balance delinquent. In comparison, Louisiana’s figures are close, indicating a widespread issue in the southern region of the United States.

WalletHub’s study sheds light on the broader issue of debt management in the U.S., where American households collectively hold approximately $17.7 trillion in debt. The high delinquency rates in Louisiana highlight the financial strain many residents are experiencing, making it essential for state and local governments, financial institutions, and community organizations to address these challenges.

For more detailed findings and to see where other states rank, visit the full report at WalletHub’s website.

About WalletHub

WalletHub is a leading personal-finance website offering free credit scores, full credit reports, and customized financial advice. WalletHub’s mission is to help consumers make smarter financial decisions and save money through improved credit scores and financial literacy.

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