- Utahns have high debt but low delinquency rates, a new WalletHub study reveals.
- Utah's average household debt is $236,197, with 8.81% delinquent tradelines.
- Factors include high income, low cost of living, and strong financial literacy.
SALT LAKE CITY — Despite the high household debt rates, Utahns display a healthy debt-handling behavior with one of the lowest delinquency rates in the nation, according to a new study by WalletHub.
The report stated that American households' debt amounted to $18.2 trillion in the first quarter of 2025, up $520 billion from the same period the previous year.
WalletHub's data shows households in Utah, on average, have a debt amount of $236,197, which includes credit cards and installment loans.
Of all trade lines — records of any type of credit activity reported to a credit bureau — in the Beehive State, 8.81% were delinquent on debt payments.
After examining the delinquent accounts, WalletHub also assessed the proportion of the total debt amount that was delinquent. In Utah, 5.03% of the total loan balances across all borrowers was delinquent.
How does delinquency work?
Most lenders report late payments after 30 days past the due date. So, delinquency status on a debt balance occurs when a borrower does not complete a scheduled payment within that time frame.
Falling behind on payments has direct consequences on someone's credit report.
"Being delinquent on debt can lead to fees, credit score damage, increased interest rates and other negative repercussions," WalletHub analyst Chip Lupo said in the report.
Late payments can not only drop someone's credit score by 100 points or more but also remain in the report for up to seven years, which can make it hard to borrow money in the future.
What can someone behind on their payments do?
Whether falling in delinquency because of forgetfulness or unexpected financial challenges, addressing the issue promptly is crucial.
WalletHub emphasized the importance of eliminating the delinquency status on the account by making the overdue payments first. However, when that is not possible, there are other options.
"Many lenders also offer hardship programs that can allow you to temporarily forgo payments due to financial difficulty," Lupo said.
Other debt relief options include debt management, debt consolidation, debt settlement, and bankruptcy.
How did WalletHub determine the most delinquent states?
To identify which states are struggling the most with debt payments, WalletHub analyzed data from all 50 states using two key metrics based on first quarter 2025 data.
The analysis considered the percentage of delinquent trade lines and the percentage of delinquent loan balances, each contributing equally to the overall score, with both metrics weighted at half.
What explains Utah's low delinquency rates?
One possible explanation might have to do with Utah's high median income paired with lower cost of living.
The Beehive State also has strong financial literacy. On a different WalletHub report, Utah trails just behind Virginia in the overall financial knowledge and education category but takes No. 1 when it comes to high school financial literacy.
Another factor includes a diverse debt composition, with an average modest credit card debt per household, relative to larger student loans and mortgages.
WalletHub rankings
Most delinquent
- Mississippi
- Louisiana
- West Virginia
- Alabama
- Arkansas
Least delinquent
- Iowa
- Utah
- Montana
- Washington
- Colorado
