MIAMI.- Although sometimes catching up with the payments of the Credit cards It is a priority in the new year, this has been a practice that has been left behind. More and more states are increasing their default rateaccording to a recent report from personal finance website WalletHub.
The study analyzed proprietary user data in the 50 states of the country during the third quarter of 2023 and the same period in 2022, in order to identify the entities in which people have the greatest difficulty canceling their credit cards.
According to this research, Oregon is the state with the greatest increase in the delinquency rate of plastic money, with 16.62% of delinquent credit cards in the third quarter of 2023. This represents an increase of 51.09% compared to the same period of the previous year .
This is mainly due to the increase in the loans requested since it registers the 10th highest growth in household debt during 2023.
“Delinquencies have contributed to the state’s second-highest increase in bankruptcy filings over the past year,” says John Kiernan, editor of WalletHub.
States with increasing debt
The second most late state in credit card debt payments is Wyomingwith 18.12% of cards not canceled in the last three months of 2023, an increase of 49.74% compared to the third quarter of 2022.
The “state of equality”, paradoxically, has one of the weakest state economies in the US and some of the highest tax rates. These, Kiernan assures, are factors that can contribute to the residents of the entity having problems catching up with the payment of bank cards.
“The biggest reason, however, is that people in Wyoming have some of the highest average credit card debt overall. High levels of debt, coupled with high interest rates, can easily lead to increased levels of bad debts,” she adds.
Alaska It is the third state with the highest increase in the delinquency rate of plastic money, with 15.56% of unpaid cards in the third quarter of 2023, a growth of 48.88% compared to the last three months of the previous year.
The “last frontier” has the highest average credit card debt throughout the country, despite having a very low proportion of people who have been allowed to delay payments on their obligations due to financial difficulties.
Where does Florida stand?
Late payments on a credit card can affect your credit score. However, the damage can be mitigated if action is taken in time, since non-payments are only reported to the credit bureaus as delinquent when they have 30 days expired.
Florida It does not escape this reality and is among the 15 states with the greatest problems paying credit card bills. The “sunshine state” occupies thirteenth position, with 14.77% of delinquent plastic money for the last three months of 2023, which represents an increase of 39.86% compared to 2022.
The WalletHub editor recommends making a “game plan” to catch up on credit card payments and avoid late payments that, in the long term, damage your credit score.
“If you are late with your payment, canceling before the 30th will prevent your delinquency from being reported to the credit agencies. Beyond that, you should pursue strategies like a hardship program, cutting expenses, and consolidating debt to bring your account current,” Kiernan emphasizes.
Top of the 15 states with the highest delinquencies
- Utah.
- Hawai.
- Idaho.
- Colorado.
- Washington.
- California.
- Michigan.
- North Dakota.
- Rhode Island.
- Delaware.
- Virginia Occidental.
@ebritop22
Source: With information from WalletHub
