Debt delinquency is on the rise in New Hampshire and across the country, and in some cases it’s nearing levels not seen since the Great Recession.
The state’s Department of Employment Security recently analyzed consumer debt data for the first quarter of 2025, the most recent state-level information available. Their analysis shows nearly 12% of New Hampshire borrowers have severely delinquent debt, and they’re particularly behind on paying off credit card and auto loan debt.
A borrower is considered delinquent when they haven’t paid their scheduled debt payment, and they are “severely delinquent” if their bill is at least 90 days past due. Nearly 10% of Granite Stater borrowers are severely delinquent on credit card payments, similar to the rate between 2006 and 2010 leading up to and during the Great Recession. Severely delinquent auto loans have also increased to 4.6%, although they haven’t reached the recession-era peak of 6%.
The share of people behind on their bills is lower in New Hampshire than the nationwide rate, but the country overall is seeing the same dips and increases. While rising delinquency rates indicate more Granite Staters are struggling to pay credit card bills and car payments, they are mostly meeting their mortgage, home equity and student loan payments.
Greg David, assistant director of New Hampshire’s Economic and Labor Market Information Bureau, said that points to a “K-shaped” economy. That’s when there’s two diverging economic trends at the same time: one going up, the other going down.
“A house is a big asset. It's going to build equity for you and your family, so those tend to be wealthier households,” David said. Those people seem to be paying their mortgage on time.
But when that’s combined with the increase in auto and credit card delinquencies, David says he thinks there’s a gap in the economic reality for non-homeowning consumers.
“[It’s] suggesting that there is a disparity between the wealthier and the less wealthy,” David said.
While the gap is concerning, David says that low level of mortgage delinquency is a good sign for the economy overall, because housing debt is the largest portion of all consumer spending.
“The Great Recession was caused by mortgage debt,” David said.
The impact of the state’s increasing delinquencies will likely remain with Granite Staters struggling to pay their bills, but that might not affect the state and country’s overall economy.
