Many people make paying off debt a New Year’s resolution, but actually following through with that is more difficult than it seems. In fact, over the past year, the rate of credit card delinquency increased in 49 out of the 50 states – all but Iowa. Not only are we failing to pay off our debt entirely, we’re actually falling further behind.

Oregon is the state where delinquency is increasing the most, according to a new report by the personal-finance website WalletHub. It’s followed by Wyoming, Alaska, Utah and Hawaii.

California Stats

Overall Rank for California: 9th

Share of Average Number of Credit Card Tradelines Delinquent in Q3 2023: 15.06 percent

Change in Average Number of Credit Card Tradelines Delinquent (Q3 2023 vs. Q3 2022): 41.46 percent

For the full report, visit: https://wallethub.com/edu/states-where-credit-card-delinquency-is-increasing-most/131750

“When you are delinquent on credit card debt, it is important to make a game plan to get your account current as soon as possible, as long-term delinquency can lead to severe credit score damage. If you’re late on your payment by fewer than 30 days, paying before the 30th day will keep your delinquency from being reported to the credit bureaus,” said John Kiernan, WalletHub Editor. “Beyond that, you should pursue strategies like a hardship program, cutting expenses, and consolidating debt to get your account current, though getting approved for a decent loan or balance transfer credit card might be difficult if you already have a lot of debt or you’ve missed payments.”

Oregon residents were delinquent on 51 percent more credit card tradelines in Q3 2023 compared to Q3 2022, the biggest increase in any state, added Kiernan.

“One big contributing factor to Oregon’s rapidly-increasing delinquency rate is the fact that Oregonians had the 10th highest household debt increase during Q3 2023. In addition, delinquency has contributed to the state having the second-highest increase in bankruptcy filings during the past year,” Kiernan said.

The top 10 states with increasing credit card delinquency were Oregon, Wyoming, Alaska, Utah, Hawaii, Idaho, Colorado, Washington, California and Michigan. Those states where it increased the least were Nebraska at number 41, followed by Connecticut, Mississippi, South Carolina, Kentucky, New Mexico, Massachusetts, Alabama, Montana, and at number 50, Iowa, seeing the smallest increase in credit card delinquency.

Credit card delinquency is a scary situation to be in, Kiernan noted, since it can make your financial future more difficult. However, there are several tips you can follow to help get your head above water and keep your account in order for the future.

Create a Realistic Budget: Create a budget that lays out how much you make, what you spend, and your debts. Don’t spend more than you earn, and make sure you have enough money designated for bills and paying off debts. If you can, set aside some money for savings and investments, as well.

Monitor Your Spending: Regularly check your credit card statements to see how much you’ve spent. Take note of unnecessary or splurge purchases and tweak your budget to stay on track.

Set up Automatic Payments: Set up automatic payments for at least the minimum amount due on your credit cards. This way, you won’t risk missing a payment deadline.

Build an Emergency Fund: Start an emergency fund to cover surprise costs. This way, you won’t have to lean on credit cards for unexpected expenses. Plus, you can dip into your emergency fund to make a credit card payment, if you have to.

Communicate with Creditors: If you’re having financial difficulty, have a chat with your creditors early on. They might have short-term fixes, like temporarily adjusting your payment amounts or interest rate, or letting you skip payments, so you don’t fall behind.

Get Back on Track After Missed Payments: If you forget to make a payment or simply are unable to pay, do your best to sort the situation out before 30 days have passed. If you get back on track by then, you can avoid being marked as delinquent on your credit report. You may still have to pay a late fee, though.