These 3 States Are the Most Behind on Their Bills

Wyoming is saddled with the highest number of outstanding debt and the highest value of unpaid bills, according to an analysis by WalletHub.

The Mountain West state was found to have an average of 4.1 collection accounts per resident. A collection account is essentially unpaid debt over a period of time which is then sold off to an agency that will grant the right to secure the outstanding amount, according to WalletHub.

Wyoming also had topped the average debt per collection of nearly $2,000. However, the trend in the state appeared to be slowing, with only the 14th most increase between the third quarter of 2023 and the last quarter of the year.

“Collection accounts aren’t increasing as quickly in Wyoming as they are in other states, though,” WalletHub pointed out, adding that it “had a small decrease in the average balance.”

Having outstanding, unpaid bills can damage the financial profile of Americans, WalletHub noted, as it can damage an individual’s credit score which could hurt their ability to secure loans to buy a home, a car or even for business investment.

WalletHub created its rankings for states based on the average number of collections accounts, the average balance and how those two measurements changed from the third to the fourth quarter of last year.

“People who have collection accounts should focus on dealing with the issue as quickly as possible. While collection accounts will stay on your credit report for seven years, paying off the balance can still improve your credit score,” Cassandra Happe, a WalletHub analyst, noted.

Behind Wyoming in the ranking, Texas averaged about 3 collection accounts per resident behind on their bills. Looking at the balance in collections, the Lone Star State ranked 17th with an average of $1,400 unpaid per account.

“Texas ranks around the middle of the country when it comes to recent increases in the number and size of collection accounts,” WalletHub’s analysis pointed out.

Montana, meanwhile, with an average of 3 collection accounts per resident, was ranked third. But it was also in the top 10—ranked 9th highest—for the average amount per collection at a little over $1,500.

The state saw a jump of 5.4 percent in average collection amounts, the fourth highest acceleration in the country.

“However, there was also a significant decrease (around 2.7%) in the number of collection accounts per person,” WalletHub said. “It’s good that people are paying off existing collection accounts, but they still have a lot of work to do when it comes to reducing their other balances.”