La. consumers struggle with credit card debt

American households have around $18.79 trillion in debt, and the personal-finance company WalletHub released its new report on the States Where People Are the Most Delinquent on Debt to show where people are at the biggest risk of credit score damage and other negative consequences.
Louisiana consumers don't fare well in the statistics.
According to WalletHub, Louisiana ranks second overall in delinquent balances.
In the first quarter of 2026, 12.20% of tradelines were delinquent in Louisiana.
In the same quarter, 12.92% of loan balances were delinquent.
To highlight the places where people are having the most trouble paying their debts, WalletHub analyzed proprietary user data from Q1 2026 for each of the 50 states. In the ranking, the company considered both the percentage of individual tradelines that were delinquent and the percentage of residents’ total loan balances that were delinquent.
“Being delinquent on debt can lead to fees, credit score damage, increased interest rates and other negative repercussions,” said Chip Lupo, WalletHub editor. “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.”
Mississippi has the biggest debt delinquency problem, with around 13.8% of individual loans and lines of credit in the state delinquent in Q1 2026, the highest percentage in the country, Lupo said.
When all the dollar amounts are added together, Mississippi residents are delinquent on over 13.6% of their overall debt, the highest percentage in the country.
Falling behind on a credit card can seriously damage your credit score, and late payments stay on your report for up to seven years. However, payments are not reported as delinquent until they are at least 30 days overdue, so catching up quickly after a missed payment is critical.
While some level of delinquency is unavoidable, rising delinquency rates often signal broader economic strain. In fact, the increase is far more pronounced in some states than in others. To identify where borrowers are struggling most to keep up with their credit card bills — and where they are managing better —WalletHub reviewed proprietary user data from Q1 2025 to Q2 2025.
“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,” Lupo said. “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.”
Tips for Paying off Debt
•Create a detailed debt repayment plan: Start by listing all your debts, including the total amount owed, interest rates, and minimum monthly payments. Develop a realistic repayment plan by allocating extra funds to the debt with the highest interest rate while making minimum payments on others. This strategy, often called the “avalanche method”, saves you the most money on interest long-term.
•Cut unnecessary expenses: Review your monthly budget and identify areas where you can cut expenses. Redirect the money saved toward debt repayment.
Eliminating non-essential spending allows you to allocate more funds toward paying off your debts faster.
•Negotiate lower interest rates: If you’re truly having trouble making your payments, reach out to your creditors and explore the possibility of negotiating lower interest rates. You may be able to get a temporary fix through a hardship plan, or a lasting arrangement by setting up a debt management plan.
•Generate additional income: Explore opportunities to increase your income, such as taking on a part-time job, freelancing, or selling items you no longer need. Supplementing your income provides extra funds that can be dedicated to paying off your debts more efficiently.
•Refinance your debt: If you have good or excellent credit but your debts have high interest rates, you should consider using a balance transfer credit card or debt consolidation loan to move the balance to a lender that charges a lower interest rate.
With a balance transfer credit card, you may even be able to secure an introductory 0% APR for a year or longer, giving you time to pay off your debt interest-free.