WalletHub study ranks Arkansas 4th in nation for delinquent debt

LITTLE ROCK, Ark. – A recent national study gave Arkansas a poor ranking for its large amount of individuals with delinquent debt.

The consumer finance site WalletHub ranked the state 4th out of the 50 states for debt delinquency. The study looked at debt in two categories, delinquent total loan balances and delinquent tradelines, a formal name for credit accounts, in the first quarter of 2024 for a state’s score.

The study’s authors said a state’s overall high delinquency rate indicates that a state’s residents are struggling financially.

According to the study, 8.32% of Arkansas's loan balances were in default, and the default rate for tradelines was 10.76%.

The two rankings combined gave the Natural State a final score of 67.83 for its fourth-place ranking. The three states with worse scores than Arkansas were Alabama, at 68.72, Louisiana, at 85.15 and Mississippi at number one with a final score of 100.

The study ranked Iowa as the least delinquent state.

On Tuesday, Gov. Sarah Huckabee Sanders called for a special session of the Arkansas legislature to cut personal income and corporate tax in the state alongside other issues. The individual income tax cuts are expected to keep an additional $500 million with consumers.

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