Which States Have the Highest Default Rates?
Four default metrics — credit card delinquency, auto loan delinquency, mortgage delinquency, and bankruptcy filings — mapped across all 50 states and DC. The states where multiple metrics exceed the national average are where household distress is concentrating.
Data period: Q4 2025 / Jan 2025 – Dec 2025 · Last updated: 2026-03-09
Which States Have the Highest Default Rates?
Nevada has the highest credit card delinquency rate at 16.3%, while Alabama leads the nation in bankruptcy filings at 404 per 100,000 residents — 2.4x the national rate. The national averages: credit card delinquency 12.4%, auto loan delinquency 5.2%, mortgage delinquency 0.9%, bankruptcy filings 169 per 100K.
Any single default metric can be explained away. Credit card trouble could be spending habits. Auto delinquency could be subprime lending. Bankruptcy could be legal culture. But when a state shows up in the top tier on all four simultaneously, the explanation has to be structural. 6 states currently exceed the national average on all four default metrics — delinquency across consumer credit, secured lending, and formal legal proceedings. 17 states exceed the national average on three or more, while 16 states remain below average on all four. American Default Research's state distress rankings show how these default patterns interact with savings, costs, and employment — the American Distress Index currently reads 64.4 (Elevated) nationally.
At a Glance
The American Distress Index reads 64.4 (Elevated). Default rates are a direct input to the ADI's Debt Stress component, which carries 41.6% of the composite weight. The national mortgage delinquency trend provides the time-series view of what these state rankings show geographically. When the same states cluster at the top of multiple default rankings, it signals structural economic pressure rather than isolated credit events. The State-Level ADI quantifies this concentration, with scores ranging from 34.5 to 76.0.
Which States Have the Highest Default Rates Across All Categories?
The question that matters here is not which state leads any single metric. It is which states keep showing up. Nevada leads credit card delinquency at 16.3%, but also ranks in the top tier for auto loan delinquency. When the same names appear across all three bars — credit cards, auto loans, and mortgages — that is not three different problems. It is one problem measured three ways: broad household budget failure in states where income cannot cover the cost of daily life.
Three Default Rates for the 10 Highest-CC-Delinquency States (Q4 2025)
NY Fed Consumer Credit Panel / Equifax. Delinquency = 90+ days past due as share of balances.
National default rate breakdown: U.S. Default Rates by Loan Type 2026
Which States Have the Most Bankruptcy Filings?
Bankruptcy is where the pipeline ends — the legal acknowledgment that debts exceed the ability to pay. And the geographic pattern here is worth thinking about. Alabama's rate of 404 filings per 100K is 2.4x the national average of 169. Nationally, bankruptcy filings rose 14% year-over-year in 2025, with 568,239 total filings across all chapters. The states with the highest filing rates are not always the states with the highest delinquency rates — legal culture, attorney availability, and foreclosure process type all shape who files and when.
Bankruptcy Filings Per 100,000 Residents — Top 15 States (2025)
U.S. Courts, Table F-2. Population: Census 2024 estimates.
National bankruptcy trends: Bankruptcy Statistics 2026
Where Has Credit Card Delinquency Risen the Most?
The pre-pandemic baseline reveals how far states have deteriorated. Nationally, credit card delinquency rose 4.2 percentage points from Q4 2019 to Q4 2025. But Louisiana saw a 5.6-point jump over the same period — from 8.6% to 14.2%. The states with the largest increases since 2019 overlap heavily with those showing the highest absolute delinquency rates today.
Credit Card Delinquency Change (pp), Q4 2019 → Q4 2025 — Top 15 States
NY Fed Consumer Credit Panel / Equifax. Delinquency = 90+ days past due.
Credit card national trends: Credit Card Default Statistics 2026
How Do Bankruptcy and Credit Card Delinquency Relate by State?
The scatter plot is where the two metrics interact in interesting ways. States in the upper-right quadrant — high credit card delinquency and high bankruptcy rates — represent the deepest concentration of household distress. States in the lower-left are managing both credit performance and solvency. But notice the outliers. Some high-delinquency states have lower bankruptcy rates, which seems contradictory until you consider the barriers: attorney costs, means test thresholds, and the cultural weight of the word "bankruptcy" in states where filing carries particular stigma. The distress is there. The legal resolution is not.
Bankruptcy Rate vs. Credit Card Delinquency by State (2025)
NY Fed Consumer Credit Panel / Equifax (delinquency), U.S. Courts Table F-2 (bankruptcy).
State Rankings: Highest Default Rates
Rankings across all four default metrics. States appearing in the top 10 on multiple lists face compounding distress — delinquency across consumer credit, auto lending, mortgages, and formal insolvency proceedings.
Highest Credit Card Delinquency
| # | State | Rate |
|---|---|---|
| 1 | Nevada | 16.3% |
| 2 | Florida | 14.9% |
| 3 | Louisiana | 14.2% |
| 4 | Texas | 14.2% |
| 5 | Georgia | 13.9% |
| 6 | Arkansas | 13.8% |
| 7 | West Virginia | 13.7% |
| 8 | Arizona | 13.7% |
| 9 | Mississippi | 13.4% |
| 10 | South Carolina | 13.4% |
Highest Bankruptcy Rate (per 100K)
| # | State | Rate |
|---|---|---|
| 1 | Alabama | 404 |
| 2 | Mississippi | 333 |
| 3 | Tennessee | 304 |
| 4 | Nevada | 295 |
| 5 | Georgia | 285 |
| 6 | Kentucky | 266 |
| 7 | Indiana | 264 |
| 8 | Utah | 232 |
| 9 | Arkansas | 228 |
| 10 | Delaware | 226 |
Highest Auto Loan Delinquency
| # | State | Rate |
|---|---|---|
| 1 | District of Columbia | 13.6% |
| 2 | Mississippi | 7.7% |
| 3 | Georgia | 7.0% |
| 4 | Alabama | 6.5% |
| 5 | Louisiana | 6.5% |
| 6 | Indiana | 6.3% |
| 7 | Michigan | 6.3% |
| 8 | South Carolina | 6.2% |
| 9 | Nevada | 6.2% |
| 10 | Delaware | 6.1% |
Highest Mortgage Delinquency
| # | State | Rate |
|---|---|---|
| 1 | Louisiana | 1.8% |
| 2 | Mississippi | 1.7% |
| 3 | Florida | 1.4% |
| 4 | New York | 1.4% |
| 5 | Oklahoma | 1.3% |
| 6 | Georgia | 1.3% |
| 7 | Texas | 1.2% |
| 8 | Alabama | 1.1% |
| 9 | Illinois | 1.1% |
| 10 | South Carolina | 1.1% |
All States: Four Default Metrics
Complete data for all 50 states and DC. Delinquency rates are percentages of balances 90+ days past due. Bankruptcy rates are annual filings per 100,000 residents. Values in red exceed the national average. The "Above" column counts how many of the four metrics exceed the national average (max 4).
Download full dataset (CSV)| State | CC Delinq % | Auto Delinq % | Mortgage Delinq % | Bankruptcy /100K | Above |
|---|---|---|---|---|---|
| Alabama | 12.2 | 6.5 | 1.1 | 404 | 3/4 |
| Alaska | 9.8 | 2.9 | 0.7 | 32 | 0/4 |
| Arizona | 13.7 | 5.6 | 0.9 | 170 | 3/4 |
| Arkansas | 13.8 | 5.6 | 1.1 | 228 | 4/4 |
| California | 13.2 | 4.8 | 0.6 | 140 | 1/4 |
| Colorado | 11.1 | 4.0 | 0.8 | 145 | 0/4 |
| Connecticut | 10.5 | 3.1 | 1.0 | 102 | 1/4 |
| Delaware | 12.2 | 6.1 | 1.1 | 226 | 3/4 |
| District of Columbia | 11.2 | 13.6 | 1.0 | 91 | 2/4 |
| Florida | 14.9 | 5.5 | 1.4 | 191 | 4/4 |
| Georgia | 13.9 | 7.0 | 1.3 | 285 | 4/4 |
| Hawaii | 10.2 | 3.7 | 0.6 | 83 | 0/4 |
| Idaho | 9.5 | 3.3 | 0.7 | 122 | 0/4 |
| Illinois | 11.6 | 5.6 | 1.1 | 211 | 3/4 |
| Indiana | 11.7 | 6.3 | 1.1 | 264 | 3/4 |
| Iowa | 10.3 | 3.5 | 0.8 | 117 | 0/4 |
| Kansas | 10.7 | 4.0 | 0.8 | 142 | 0/4 |
| Kentucky | 11.8 | 4.9 | 1.0 | 266 | 2/4 |
| Louisiana | 14.2 | 6.5 | 1.8 | 224 | 4/4 |
| Maine | 9.8 | 3.1 | 0.8 | 43 | 0/4 |
| Maryland | 11.7 | 6.0 | 1.1 | 201 | 3/4 |
| Massachusetts | 10.3 | 2.6 | 0.7 | 73 | 0/4 |
| Michigan | 11.3 | 6.3 | 0.9 | 222 | 2/4 |
| Minnesota | 8.6 | 3.0 | 0.6 | 179 | 1/4 |
| Mississippi | 13.4 | 7.7 | 1.7 | 333 | 4/4 |
| Missouri | 11.3 | 5.5 | 0.8 | 171 | 2/4 |
| Montana | 9.8 | 4.0 | 0.5 | 73 | 0/4 |
| Nebraska | 9.8 | 3.3 | 0.7 | 141 | 0/4 |
| Nevada | 16.3 | 6.2 | 0.9 | 295 | 3/4 |
| New Hampshire | 9.8 | 3.0 | 0.6 | 67 | 0/4 |
| New Jersey | 11.4 | 4.2 | 1.1 | 153 | 1/4 |
| New Mexico | 11.9 | 6.1 | 1.0 | 79 | 2/4 |
| New York | 12.9 | 4.3 | 1.4 | 119 | 2/4 |
| North Carolina | 12.5 | 6.1 | 0.9 | 91 | 2/4 |
| North Dakota | 9.0 | 2.9 | 0.9 | 79 | 0/4 |
| Ohio | 11.1 | 5.3 | 1.0 | 222 | 3/4 |
| Oklahoma | 13.3 | 5.5 | 1.3 | 185 | 4/4 |
| Oregon | 9.5 | 3.6 | 0.6 | 194 | 1/4 |
| Pennsylvania | 12.3 | 4.8 | 1.1 | 108 | 1/4 |
| Rhode Island | 11.4 | 3.5 | 1.0 | 98 | 1/4 |
| South Carolina | 13.4 | 6.2 | 1.1 | 97 | 3/4 |
| South Dakota | 9.1 | 3.6 | 0.8 | 73 | 0/4 |
| Tennessee | 11.6 | 5.7 | 0.7 | 304 | 2/4 |
| Texas | 14.2 | 5.8 | 1.2 | 125 | 3/4 |
| Utah | 9.4 | 3.0 | 0.7 | 232 | 1/4 |
| Vermont | 9.0 | 2.8 | 0.6 | 44 | 0/4 |
| Virginia | 9.8 | 4.6 | 0.7 | 184 | 1/4 |
| Washington | 9.3 | 3.8 | 0.6 | 120 | 0/4 |
| West Virginia | 13.7 | 5.3 | 1.1 | 101 | 3/4 |
| Wisconsin | 8.0 | 3.6 | 0.5 | 173 | 1/4 |
| Wyoming | 10.5 | 3.5 | 0.8 | 98 | 0/4 |
| National Average | 12.4 | 5.2 | 0.9 | 169 | — |
Values in red exceed the national average. Rows with a warm background exceed all four metrics.
The Geographic Default Pattern
The states with the highest default rates cluster into two distinct corridors. The Deep South — from Mississippi to Georgia — shows elevated bankruptcy filings driven by lower incomes, weaker consumer protections, and high Chapter 13 usage (a repayment plan that often fails). The Sun Belt — Nevada, Florida, Texas — shows elevated credit card and auto loan delinquency driven by rapid population growth, rising cost of living, and the FHA-heavy mortgage mix that defines these markets — a pattern explored in The FHA Signal. Where the two corridors overlap — particularly in the Gulf states — all four default metrics fire simultaneously, producing the highest State ADI scores in the country. For a full analysis of which states are most affected and why, see the State ADI Rankings 2026.
Data Sources
Delinquency Data
State Level Household Debt Statistics 2003-2025, Federal Reserve Bank of New York, February 2026. Delinquency rates represent the share of balances 90+ days past due among adults with credit files, by state of residence.
Bankruptcy Data
U.S. Courts, Table F-2: U.S. Bankruptcy Courts — Business and Nonbusiness Cases Commenced, by Chapter of the Bankruptcy Code. Annual filings per 100,000 residents using Census 2024 population estimates. Includes Chapter 7, Chapter 13, and Chapter 11.
State ADI
State-Level American Distress Index computed by American Default Research from six data sources. See State ADI methodology and national ADI methodology for details.
Frequently Asked Questions
Which state has the highest default rate in 2025?
Nevada has the highest credit card delinquency rate at 16.3%. Alabama has the highest bankruptcy filing rate at 404 per 100,000 residents. District of Columbia leads auto loan delinquency at 13.6%. The "worst" state depends on which metric you prioritize — 6 states exceed the national average on all four default metrics tracked here.
What is the national average default rate?
As of Q4 2025, the national average credit card delinquency rate is 12.4%, auto loan delinquency is 5.2%, and mortgage delinquency is 0.9%. The national bankruptcy filing rate is 169 per 100,000 residents (2025 full year). These represent the share of loan balances 90+ days past due (delinquency) and annual court filings per capita (bankruptcy).
Which regions have seen the largest increase in default rates since 2019?
Sun Belt and Deep South states have seen the largest deterioration. Credit card delinquency nationally rose from 8.1% in Q4 2019 to 12.4% in Q4 2025, but the increase is geographically uneven. Bankruptcy filings rose 14% year-over-year nationally in 2025, with filing rates per capita highest in Southern and Southeastern states. Upper Midwest and Mountain West states have remained closer to pre-pandemic levels. For a breakdown by loan type rather than geography, see U.S. default rates by loan type.
How do state default rates connect to the American Distress Index?
State-level default rates feed directly into the State ADI, a composite index that combines delinquency data with bankruptcy filings, unemployment, SNAP enrollment, CFPB complaint density, and safety net coverage across all 51 jurisdictions. The Debt Stress component (30% weight) uses credit card, auto, and mortgage delinquency rates. States with the highest State ADI scores tend to appear at the top of multiple default rankings — the geographic pattern of defaults closely mirrors the geographic pattern of composite distress.
Why do some states have high bankruptcy rates but low delinquency?
The relationship between delinquency and bankruptcy varies by state law and demographics. States like Alabama and Tennessee have high bankruptcy filing rates partly because of cultural norms, attorney marketing practices, and high Chapter 13 usage — a reorganization plan where debtors repay over 3-5 years. Meanwhile, some states with high delinquency but lower bankruptcy rates may have populations that lack the resources to file ($1,500–$3,500 attorney fees) or face structural barriers. The scatter chart above visualizes this divergence across all states.