Data Reveals Nearly 1 in 12 Hoosiers Are in Loan Default
If you're behind on your debt, and you live in Indiana, a new study reveals you're not alone.
WalletHub analyzed Q1 data from all 50 states, examining the percentages of both "Tradeline Delinquencies" and "Loan Balance Delinquencies." What their analysts found is that an alarming percentage of Americans have missed loan and credit card payments, falling into default on their debts.
Among the states with the highest percentage of Mississippi and Louisiana top the list, taking the number one and number two spots, respectively, as the most delinquent states.
How Indiana Compares to the Rest of the U.S.
However, the Hoosier State is not far down the list. Ranking 12th overall, many Indiana residents appear to be in a tight financial situation. A staggering 8.47% of Hoosiers are reportedly in default on loans.
The High Cost of Falling Behind
As WalletHub points out, falling behind can be financially devastating, with delinquencies resulting in a hike in interest rates, added fees, and even a drop in your credit score.
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Why Delinquencies Are on the Rise
Late payments reported on your credit history can stay there for up to seven years, and delinquency may also result in late fees, higher interest rates, account closures, and even lawsuits. On an individual level, delinquency might stem from forgetfulness or unexpected financial challenges. However, when a large share of people in a state are delinquent, it signals broader financial struggles among residents. - WalletHub
Options for Hoosiers Facing Loan Default
For those who have fallen behind, WalletHub points out that many lenders have hardship programs available to help consumers who have found themselves in tough financial situations.
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