Minnesota Leads Nation in Rising Credit Card Delinquencies, Study Finds

(KNSI) – A new study finds Minnesotans are having trouble paying off consumer debt.

The North Star State saw a dramatic 32.88% increase in credit card delinquencies between the first and second quarters of 2025, earning it the dubious distinction of ranking first nationally for growing payment troubles.

According to WalletHub’s latest report on states with the highest credit card delinquency growth, nearly one in five credit card accounts held by Minnesota residents were delinquent in the second quarter of 2025.

The report says rising delinquency rates can trigger a cascade of financial consequences for affected consumers. Missed payments typically result in late fees, penalty interest rates, and damage to credit scores that can persist for years. Lower credit scores, in turn, make it more difficult and expensive to borrow money for major purchases like homes and vehicles.

The study states that Minnesotans carry relatively large credit card balances compared to other states, and, when coupled with today’s high interest rates, this debt load has become increasingly difficult to manage. Adding to the concern, Minnesota ranks 26th among states with the most new debt. While not at the top of that list, the data indicates Minnesotans continue to take on additional credit card debt even as existing accounts become harder to repay.

Minnesota’s struggles reflect a broader national pattern. Credit card delinquency rates increased across all 50 states during the first half of 2025.

Financial experts recommend that consumers struggling with credit card debt explore options such as balance transfer cards, debt consolidation, or working directly with creditors to establish payment plans before accounts become seriously delinquent.

Along with Minnesota, Iowa, Kansas, South Dakota, and Ohio were among the five states with the fastest-growing debt. The states with the least increase were Florida, Vermont, Wyoming, Alaska and California.

See the study for yourself by clicking here.

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