MIAMI--New WalletHub analysis shows wide disparities across states in the prevalence and growth of debt collection accounts, offering fresh insight into where credit stress remains most acute heading into 2026 and where FIs may be seeing elevated delinquency and recovery pressure.
Wyoming ranked worst overall, with residents averaging more than four collection accounts per person and the highest average balance per account at $2,024. While the number of accounts rose only modestly between the second and third quarters of 2025, WalletHub found Wyoming recorded one of the largest increases in average balances, signaling growing severity even as volumes stabilized.
Alaska and Montana followed closely. Alaska averaged more than three collection accounts per resident, with balances averaging $1,687, and ranked among the states with the fastest growth in both balances and account counts during the period. Montana also averaged about three collection accounts per resident, with the third-highest average balance nationally at $1,805, reflecting continued pressure on household credit profiles, WalletHub said.
Several Sun Belt states also ranked high, including Nevada, Arizona, Georgia, and Florida, underscoring ongoing stress in fast-growth markets. Texas ranked 11th overall. At the opposite end of the spectrum, Mississippi, North Carolina, New York, Massachusetts, and Illinois showed the lowest concentration of collection accounts.
WalletHub’s rankings were based on four metrics, including the average number of collection accounts, average balances, and quarter-over-quarter changes in both measures from Q2 to Q3 2025. For credit unions, the findings highlight where collections activity and credit remediation efforts may remain elevated in 2026, particularly in rural, energy-exposed, and high-cost states.