Debt Timebomb: Missed credit card payments are UP in 49 of 50 states as inflation and high interest rates have wreaked financial havoc:

The number of people falling behind on their credit card bills increased in 49 of the 50 states last year, a sobering new report reveals. 

As inflation took its toll on household budgets, Americans in their millions became delinquent on credit card debt – with some states much more badly affected than others. 

According to analysis by WalletHub, the number of borrowers struggling to keep on track of their credit card bills has risen the fastest in Oregon. Between September 2022 and September 2023, delinquencies in the state soared by 51 percent.

Generally payments are reported to the credit bureaus as delinquent once they are 30 days past due. Being delinquent on a credit card is damaging for your credit score and late payments remain on your credit report for seven years, experts warn. 

The report, which lays bare how raging inflation and sky-high interest rates have left a scar on the nation’s finances, comes as Americans’ total credit card balances soared to a record $1.08 trillion in September last year. 

While some credit card delinquency is always inevitable, when the rates of delinquency increase, that can indicate that the economy as a whole is struggling, the report said. 

WalletHub found that as of September 2023, 16.62 percent of credit card tradelines in Oregon were delinquent – up 51.09 percent from the year prior. 

A tradeline is simply the term used to refer to accounts listed on credit reports.

The study found that one reason why Oregon’s delinquency rate is increasing so much is that its residents are simply borrowing more. 

A separate report by the personal finance site found that the average household debt increased by $754 in the year to September 2023 – the tenth biggest increase of any state. 

It suggested that this borrowing surge has led to an increased number of households who are finding it more difficult to pay back their bills. 

People in Oregon also increased the frequency of their bankruptcy filings at the second-highest rate in the country during the past year, it found. 

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