As of a 2015 NPR report, more than $113 billion in child support debt was owed in the U.S. And that debt doesn't just affect those who are waiting on child support checks.
Delinquent child support can get listed as a tradeline, or account on your credit report. It is reported to credit bureaus directly by the municipality or agency collecting the debt.
And, having unpaid child support on your record can have a "substantial, negative" affect on your credit score, according to an email from Rod Griffin, director of public education for credit bureau Experian.
These negative affects could lead to higher interest rates or being declined for a loan as long as the delinquent child support remains in your credit history, he said.
Payments Matter
In some states, even late or untimely child support payments can work against you as much as if you missed another financial payment, such as a mortgage, according to an email from a TransUnion spokesperson.
"When payments are made as required, the account will reflect on-time payments and potentially have a positive impact on the consumer's credit report," the TransUnion spokesperson said. "Late or missed payments would have a negative impact, just like late payments on a car loan or credit card bill."
It is important to look at the specific rules and regulations in your state, as they vary by location. Some state laws only require child support obligations be reported when they hit a certain threshold, based on the amount owed or days late. The TransUnion spokesperson also noted that those delinquencies would have an adverse impact on a consumer's credit report.
Delinquency Letters
If you receive a delinquency letter from a state agency, it's a good idea to contact the agency as soon as possible. Some agencies have a short time limit on how long you have to respond to their letter before the delinquency is reported.
Attorney Andrew G. Vaughn, owner of NuVorce divorce firm and Domestic Relations law professor at Loyola University Chicago School of Law, recommended working out child support payments directly with your child's other parent if possible, noting that rules are a little tighter if payments are made through a state agency.
"If your state allows direct pay to your [child's other parent], you can usually avoid these credit problems even if you fall behind in payments," Vaughn said. "It is unlikely your [child's other parent] will report you."
Get to Court Quickly
The reality is, most people fall behind in support because they've lost a job or their income was reduced. "If that happens, it's important to get into court immediately to ask to reduce or pause the support obligation," Vaughn explained. He said this is because each month a payment goes unpaid counts as a mini-judgment against you.