It’s Not Surprising Where Iowa Ranks In Paying Off Debt

You don't want to.  But you have to.  Every month.  The bills come in and you "write the check" to pay for everything from your car and house to water and heat.

Some areas of the country are better at paying their bills on time than others.  Some might call it "Midwest Values".  To those of us in the Midwest, it really shouldn't be a surprise.

Debt Can Be Cripiling In Iowa

An estimated 430,000 Iowans have student loan debt, and nearly 300,000 Iowans carried medical debt as of 2023. Additionally, 13.3% of Iowans have student loan debt, and this figure is higher among those under 35

But wait, there's more.  The average American carries $7,000 of credit card debt, with total American credit card debt exceeding $1.2 trillion in mid-2025.

Add it all up, and the average American household has $175,000 in debt.  The majority of this is mortgage debt.

The Midwest Is Best At Paying Its Debt On Time

Before we get to the best, let's talk about the worst.

Mississippi has the biggest debt delinquency problem. Around 14.3% of individual loans and lines of credit in the state were delinquent in Q1 2025, the highest percentage in the country.

Louisiana is the second-most delinquent state, with residents delinquent on 13.1% of all their individual loans and lines of credit.

So the Deep South takes the two worst spots.  Meanwhile, Midwest Nice comes out on top again.

Iowa is ranked as the 50th state (which is the best), where people are the most delinquent on debt.  Iowa has the lowest percentage of tradelines and the lowest percentage of loan balance in Q1.

But it's not just Iowa in the Midwest; Wisconsin comes in at 45 and Illinois at 43.  Now, when it comes to the true Midwest, there is one outlier.  Come on, Minnesota.  Pay your bills.  They are ranked 28.

So for the most part, Midwest Nice not only applies to being nice to other people, but also to the companies you owe money to.

The list of states is available here, thanks to Wallethub.com.