Iowa Financial Distress Profile
Household debt and delinquency, bankruptcy filings, unemployment, foreclosure law and county distress scores for Iowa and its 99 counties, from federal sources, each shown beside the U.S. figure.
· Data from Federal Reserve Bank of New York, Consumer Financial Protection Bureau, U.S. Bureau of Labor Statistics, Administrative Office of the U.S. Courts, Q4 2025
Behind on your mortgage in Iowa? See your options under Iowa law →
Iowa ranks #40 of 51 jurisdictions on the State Distress Index, in the second-least distressed fifth: its score of 22 means it is more distressed than 22% of the 50 states and D.C..
How Does Iowa Compare With the U.S.?
Iowa is above the U.S. figure on 0 of 5 household debt measures from the Federal Reserve Bank of New York for Q4 2025. Credit card delinquency is 10.3%, 2.1 percentage points below the U.S. 12.4%; total debt per adult with a credit file is $47,410, $15,790 below the U.S. $63,200.
Credit card delinquency in Iowa is up 3.3 percentage points from 7% in Q4 2019, and total debt per adult with a credit file is 16.4% higher than in Q4 2019.
Key Statistics at a Glance
State Distress Index: Iowa
Movement since 2006
Since 2006, Iowa has climbed from the 41st-most distressed jurisdiction to the 39th-most distressed, as of 2025 Q1. Its State Distress Index score rose from 18 to 24 over the same span.
Quarter-aligned back-series. Each quarter re-ranks all 51 jurisdictions on that quarter's own data, so a state's position here can sit several spots from the current reading above, which uses each input's latest value.
Domain Breakdown
The national American Distress Index reads 47.0 (Typical). The composite itself sits higher than 44% of all published quarters since 2005. Iowa's State Distress Index of 22 (low state distress) is computed from 4 equal-weighted domains covering delinquency, default and legal signals, housing-basis debt burden, and labor.
Iowa and the U.S.
Delinquency rates measure balances 90 or more days past due as a share of total balances in each loan category. Higher rates signal greater household financial stress. Debt and balance figures are per adult with a credit file, not per resident.
Download all states (CSV)Iowa and the U.S.: 5 Household Debt Measures (Q4 2025)
Source: NY Fed Consumer Credit Panel / Equifax, Q4 2025.
Similar States by Distress Level
The states ranked closest to Iowa (#40) on the State Distress Index, with the domain that scores highest in each.
Change Since 2019
Q4 2019, the last fourth quarter before the pandemic, is the baseline. Credit card delinquency is higher than in Q4 2019 in 51 of 51 jurisdictions, and auto loan delinquency is higher in 33.
| Metric | Q4 2019 | Q4 2025 | Change | U.S. Q4 2025 |
|---|---|---|---|---|
| Credit Card Delinquency | 7.0% | 10.3% | +3.3 percentage points | 12.4% |
| Auto Loan Delinquency | 2.9% | 3.5% | +0.6 percentage points | 5.2% |
| Mortgage Delinquency | 0.68% | 0.81% | +0.13 percentage points | 0.94% |
| Total Debt per Adult With a Credit File | $40,740 | $47,410 | +16.4% | $63,200 |
| Card Balance per Adult With a Credit File | $2,650 | $3,250 | +22.6% | $4,350 |
Iowa Foreclosure Law Summary
If you fall behind on mortgage payments, the steps and deadlines depend on state law. Iowa mainly uses judicial foreclosure, which goes through the courts.
Iowa requires judicial foreclosure for standard residential mortgages. The lender files a civil foreclosure petition in the District Court of the county where the property is located.
- Paying to stop the foreclosure: Within 30 days after the creditor gives the notice of right to cure. For a one- or two-family home that is the borrower's residence, a creditor who is not an individual must give this notice before starting foreclosure (Iowa Code § 654.2D). No right to cure if the creditor already gave a proper notice of right to cure for a prior default that occurred within 365 days of the present default (Iowa Code § 654.2D(7)).
- Post-sale redemption: 12 months from the date of the sheriff's sale (regular track), during which the debtor keeps possession. Shorter periods apply in some cases, including: six months (three months for property not used for farming) when a mortgage on less than 10 acres provides for it and the lender waives any deficiency judgment; 180 days for property that is not farmland and not the debtor's one- or two-family residence; and 30 days (60 days if there is a junior creditor) when the court finds the home stopped being the debtor's residence after foreclosure. For agricultural land, the debtor and lender may agree, with court approval, to extend redemption up to five years. No redemption right after the sale under the FWR track.
No Dollar Cap on the Homestead Exemption
Iowa's homestead exemption has no dollar cap, within the acreage and other limits state law sets, so it can protect the equity in a primary home from many other creditors. It does not stop a mortgage foreclosure. Credit card delinquency is 10.3%, 2.1 percentage points below the U.S. 12.4%, and 0 of 5 NY Fed household debt measures are above the U.S. figure.
Distress by County
The County Distress Index scores every county in Iowa on a 0-100 scale using five equal-weighted domains: delinquency, default and legal, debt burden, labor, and safety net and buffer. Iowa's 99 counties average 15.5: on average, Iowa's counties are more distressed than 15% of U.S. counties. Across all 3,144 counties the average is 50.0, the middle of the scale.
Score Label Distribution
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Most Distressed Counties
| County | Score | Score Label | Top Driver |
|---|---|---|---|
| Wapello County | 62 | moderate-high county distress | Delinquency |
| Des Moines County | 56 | moderate county distress | Debt Burden (housing basis) |
| Appanoose County | 47 | moderate-low county distress | Safety Net & Buffer |
| Pottawattamie County | 47 | moderate-low county distress | Debt Burden (housing basis) |
| Montgomery County | 46 | moderate-low county distress | Default & Legal |
Least Distressed Counties
| County | Score | Score Label | Top Domain |
|---|---|---|---|
| Lyon County | 0 | exceptionally low county distress | Debt Burden (housing basis) |
| Winneshiek County | 0 | exceptionally low county distress | Debt Burden (housing basis) |
| Sioux County | 0 | exceptionally low county distress | Debt Burden (housing basis) |
| Carroll County | 0 | exceptionally low county distress | Default & Legal |
| Bremer County | 0 | exceptionally low county distress | Default & Legal |
The most distressed county in Iowa is Wapello County (62, moderate-high county distress); the least distressed is Lyon County (0, exceptionally low county distress).
Explore all 99 Iowa counties →CFPB Mortgage Complaints in Iowa
The Consumer Financial Protection Bureau has received 1,504 mortgage complaints from Iowa since 2012, 46.9 per 100,000 residents, 88.1 below the U.S. rate of 135. Iowa ranks #50 of 51 on complaints per resident.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Complaints | 93 | 112 | 72 | 75 | 86 | 105 |
Source: CFPB Consumer Complaint Database. Filed a mortgage complaint? Search the complaint database.
Bankruptcy Filings: Iowa
The filing rate is bankruptcy cases filed in a year, from the Administrative Office of the U.S. Courts, per 100,000 residents. It does not identify household causes, motives, assets, income, or case outcomes. Iowa's rate of 116.6 is 52.5 below the U.S. rate of 169.1.
Source: U.S. Courts, Administrative Office. Table F-2: Cases Commenced by Chapter. Per-capita rates use 2024 U.S. Census Bureau population estimates.
Credit Distress: Iowa
The Federal Reserve Bank of Philadelphia's Consumer Credit Explorer reports credit health from NY Fed / Equifax credit records. 11.7% of people with a credit file in Iowa have debt in collections, 2.2 percentage points below the U.S. average of 13.9%. 12.5% have subprime credit scores (below 620), and 32.5% are credit-constrained.
Source: Philadelphia Fed Consumer Credit Explorer. Data from NY Fed Consumer Credit Panel / Equifax. Q1 2025. The U.S. average is weighted by state population (our calculation).
Economic Context: Iowa
SNAP enrollment and unemployment give context for the debt figures above. The unemployment rate measures joblessness among people in the labor force. SNAP enrollment reflects each state's program rules and reach as well as need, which is why it is not part of the State Distress Index.
Sources: U.S. Department of Agriculture Food and Nutrition Service, BLS Local Area Unemployment Statistics. Population: U.S. Census Bureau 2024 estimates.
Safety Net Strength: Iowa
The Safety Net Index measures how much support infrastructure is available to households in financial distress — combining healthcare coverage, food assistance, emergency housing funds, and legal protections. Iowa scores 41.7 out of 100 (Weak), ranking #28 of 51 jurisdictions.
Component Breakdown
Sources: Kaiser Family Foundation (Medicaid, 2024), USDA FNS (SNAP, June 2026), state foreclosure statutes.
Frequently Asked Questions
What is the credit card delinquency rate in Iowa?
The credit card delinquency rate in Iowa is 10.3% as of Q4 2025, ranking #34 among the 51 states and DC, 2.1 percentage points below the U.S. 12.4%. It is up 3.3 percentage points from 7% in Q4 2019.
How does Iowa's household debt compare with the U.S.?
The NY Fed reports a $47,410 total debt balance per adult with a credit file in Iowa, $15,790 below the U.S. $63,200 on the same basis. That is 16.4% higher than in Q4 2019. Iowa ranks #44 on that basis.
What is the auto loan delinquency rate in Iowa?
Auto loan delinquency in Iowa is 3.5% as of Q4 2025, 1.7 percentage points below the U.S. 5.2%. This ranks #38 of 51. The rate is up from 2.9% in Q4 2019.
What type of foreclosure process does Iowa use?
Iowa mainly uses judicial foreclosure, which goes through the courts. See our Iowa foreclosure guide for the timeline, homeowner protections and where to get free help.
What is Iowa's State Distress Index score?
Iowa scores 22 on the State Distress Index (low state distress), which means it is more distressed than 22% of the 50 states and D.C.. It ranks #40 of 51 jurisdictions, in the second-least distressed fifth. The score is built from 4 equal-weighted domains: delinquency, default and legal, debt burden on a housing basis, and labor. It ranks states against each other at one time. Separately, the national American Distress Index reads 47.0 (Typical) for the country over time. The composite itself sits higher than 44% of all published quarters since 2005.
How many CFPB mortgage complaints have been filed in Iowa?
The CFPB has received 1,504 mortgage complaints from Iowa since 2012, 46.9 per 100,000 residents, 88.1 below the U.S. rate of 135. That ranks #50 of 51. Companies responded to 98.3% of Iowa complaints on time.
What is the bankruptcy filing rate in Iowa?
Iowa had 3,738 bankruptcy filings in the 12-month period ending Dec 2025, 116.6 per 100,000 residents, 52.5 below the U.S. rate of 169.1. This ranks #33 of 51. Chapter 7 filings account for 82.1% and Chapter 13 for 16.7%. That is 19.7% more filings than in 2024.
What percentage of people in Iowa have debt in collections?
11.7% of people with a credit file in Iowa have debt in collections, 2.2 percentage points below the U.S. average of 13.9%. This ranks #27 of 51. 12.5% have subprime credit scores (below 620), 4.4 percentage points below the U.S. average of 16.9%. Data from the Federal Reserve Bank of Philadelphia Consumer Credit Explorer (NY Fed / Equifax), Q1 2025.
What is the SNAP enrollment rate in Iowa?
242,235 residents of Iowa received SNAP benefits in June 2026, an enrollment rate of 7.5%, 3.2 percentage points below the U.S. rate of 10.8%. This ranks #39 of 51. That is 9.3% fewer people than in June 2025. The rate is 1.8 percentage points below the October 2019 to February 2020 average.
How strong is Iowa's financial safety net?
Iowa scores 41.7 out of 100 on the Safety Net Index, ranking #28 of 51 (Weak). The score combines Medicaid coverage (18.9% enrollment rate, expansion state), SNAP enrollment (7.5%), and foreclosure legal protections. That is below the state average of 43.6.
Which Iowa counties have the highest financial distress?
Wapello County is the most distressed county in Iowa with a County Distress Index score of 62 · moderate-high county distress. Des Moines County (56 · moderate county distress), Appanoose County (47 · moderate-low county distress), Pottawattamie County (47 · moderate-low county distress) are next. Lyon County is the least distressed at 0 · exceptionally low county distress. See all 99 counties at /counties/iowa/.
How long can foreclosure take in Iowa?
Iowa mainly uses judicial foreclosure, which goes through the courts. The timeline varies by county and case. Paying to stop the foreclosure: Within 30 days after the creditor gives the notice of right to cure. For a one- or two-family home that is the borrower's residence, a creditor who is not an individual must give this notice before starting foreclosure (Iowa Code § 654.2D). No right to cure if the creditor already gave a proper notice of right to cure for a prior default that occurred within 365 days of the present default (Iowa Code § 654.2D(7)). Homestead exemption: Unlimited dollar value for homestead property up to ½ acre within a city, town, or village (Iowa Code § 561.16), or up to 40 acres of rural agricultural or residential homestead. Iowa's unlimited homestead exemption protects against unsecured judgment creditors but does NOT bar the mortgage lender from foreclosing its security interest in the homestead. Full details at /help/foreclosure/iowa/.
Where does Iowa rank for financial distress?
Iowa scores 22 on the State Distress Index (low state distress), which means it is more distressed than 22% of the 50 states and D.C.. It ranks #40 of 51 jurisdictions, in the second-least distressed fifth. 0 of 5 NY Fed household debt measures are above the U.S. figure. The State Distress Index domain with the highest score is Default & Legal. County Distress Index details are listed separately by county. The safety net ranks #28 (Weak).
Data Sources
NY Fed Consumer Credit Panel
State-level household debt and delinquency statistics from the Federal Reserve Bank of New York, based on Equifax credit bureau data. Published once a year with fourth-quarter figures.
American Distress Index
Composite index tracking U.S. household financial distress across five equal-weighted domains. National score as of the latest available quarter.
Iowa Foreclosure Statutes
State foreclosure law data compiled from primary statutory sources and validated against legal databases. Last verified 2026-03-10.
CFPB Complaint Database
Mortgage complaints filed with the Consumer Financial Protection Bureau, 2012–present. Density calculated using 2024 Census population estimates.
USDA SNAP State Activity
Monthly SNAP participation by state from the USDA Food and Nutrition Service. Enrollment rates computed against 2024 Census population estimates.
U.S. Bankruptcy Courts
Annual bankruptcy filings by chapter and district from the Administrative Office of the U.S. Courts. Per-capita rates computed against 2024 Census population estimates.
Philadelphia Fed Consumer Credit Explorer
Quarterly credit health metrics (collections, subprime share, delinquency, credit-constrained rates) from Equifax via the NY Fed Consumer Credit Panel.
Safety Net Index
Composite score from KFF Medicaid enrollment (2024), USDA SNAP participation (latest month), and state foreclosure legal protections.