The state of the U.S. economy 鈥� with high gas and food prices, high interest rates and elevated home prices 鈥� has many consumers struggling to make ends meet. This article examines recent data from the 10 most financially distressed states and the debt picture in the United States.
The most financially distressed states
The financial health of a U.S. state is made up of the financial wellness of its residents. If a majority of the population delays or misses debt payments, has changes in credit scores or has growing bankruptcy claims, it indicates that the state is financially distressed.
measuring the number of state residents in financial distress. This study painted a picture of economic trends in each state and the residents鈥� overall financial health.
The study examined factors including bankruptcy rates, credit scores, and 鈥渄ebt鈥� search volume. According to the analysis, the top 10 most financially distressed states are:
Texas
Texas has one of the highest rates of consumer debt in the nation. On average, Texans have . Texans also have the fourth-highest credit card delinquency rate in the nation, at 14.2%.听
Texas had the third-highest number of bankruptcies nationally, along with a high search volume for loans and debt help.
Florida
As one of the nation鈥檚 fastest-growing states, Florida residents struggle with affordability and financial stress.听
Floridians carry an average of $9,184 in credit card balances per user. Florida has the second-highest credit card delinquency rate at 14.9% and the .
On average, housing costs are higher due to the influx of new residents, and home insurance costs are double the national average. The recently rose by 14%, making Florida a top state for foreclosures in the nation.
Louisiana
Louisiana has the second-highest personal debt burden in the nation, . The state ranks among the top three poorest states in the U.S. with a poverty rate of 17.4%.听
Louisiana is also the . It also has the after 90 days and the highest average number of accounts in distress. Student loan delinquency rates are also among the highest.听
The average credit card debt in Louisiana is $7,015 per user. Louisiana has the third-highest credit card delinquency rate at 14.2%. Additionally, Louisianans have the second-lowest at just 686.听
Louisiana residents log some of the highest numbers of Google searches for loan-related queries, highlighting residents鈥� concerns about personal finances.
Nevada
Nevada leads the nation in average credit card delinquency, at 16.3% 鈥� four points higher than the national average. Nevadans have an average credit card debt of $8,381 per resident.
Residents also have the ninth lowest credit scores in the nation. Foreclosures have continued to grow rapidly year over year. Nevadans are also the fourth most frequent bankruptcy filers per capita in the U.S.
South Carolina
South Carolina ranks second-highest in the number of residents with accounts in distress. About 40% of the population falls below the (Asset Limited, Income Constrained, Employed), making affordability a significant issue.
The average credit card debt per user in South Carolina is $6,706. The credit card delinquency rate is the 10th highest in the nation at 13.4%. The average FICO score of South Carolinians is 699.听
South Carolina is also sixth in the nation for debt delinquency.
Oklahoma
The average credit card debt per Oklahoma resident is $6,601, and the average credit card delinquency is 13.3%. More than 42% of Oklahoma residents fall under the ALICE Threshold, meaning they struggle to afford basic living expenses.
The average Oklahoman credit bureau score falls at 695 鈥� tied with Texas for the fourth-lowest score. Oklahoma residents rank among the top five states searching for information about debt help and loans.听
North Carolina
North Carolinians rank high on the list for people with accounts in distress. Average credit card debt per user is $7,487, and the credit card delinquency rate is 12.5%. The average credit score for N.C. residents is 706.
North Carolina ranks eighth in the nation for delinquent debt payments. The lingering effects of Hurricane Helene, including damage to both properties and the economy, have continued to place stress on the state.听
Mississippi
Mississippi leads the nation in delinquent debt payments and has one of the lowest average credit scores at 676. It also ranks second in the nation for bankruptcy filings. Mississippi is considered the poorest state in the U.S. with a poverty rate of 18.8%.
. The average credit card debt is $6,146, and the delinquency rate is 13.4%. Mississippi has the highest percentage of households without bank accounts. It also has some of the lowest rates of sustainable spending habits and emergency savings among residents.
Kentucky
Kentucky is home to one of the nation鈥檚 highest poverty rates, ranking alongside Mississippi and Louisiana. It also has , according to WalletHub.
Average credit card debt per user in Kentucky is $5,908, and the credit card delinquency rate is 11.8%. Kentucky residents have an average credit score of 704. The state has the sixth highest number of bankruptcy filings in the nation.听
Alabama
Alabama firmly ranks among the top five poorest states in the U.S., with a poverty rate of 16.1%. It has the fourth highest number of bankruptcy filings in the nation.
The average credit card debt among Alabama residents is $6,619, and the average credit card delinquency rate is 12.2%. The average credit score is 691. Alabama residents rank fifth in the nation for delinquency on debt repayment.
Despite being an affordable place to live, Alabama residents struggle with low wages and the cost of basic necessities.听
The debt-versus-wealth paradox
Interestingly, when comparing debt by state, the states with the highest total outstanding balances are often wealthy, high-cost-of-living areas. This includes states like California, New York, Washington, Massachusetts and Maryland.
High mortgages and steep living costs drive these numbers. However, high incomes shield these residents from severe financial distress. They maintain strong credit scores and low default rates, according to the WalletHub study.
Conversely, the most financially distressed states face different economic struggles. Residents there hold lower average debt balances overall. Yet, they suffer from high delinquency and default rates. They also experience surging bankruptcy filings and lower credit scores.
How the 糖心原创vlog can help with overwhelming debt
Credit card delinquencies have hit an all-time high. Personal savings rates have fallen to a two-decade low. Despite these harsh economic realities, the Financial Counseling Association of America (糖心原创vlog) can help.
Our member agencies work with consumers across all 50 states. We hear personal stories of distress firsthand every day.
If you are struggling with overwhelming debt, reach out to the 糖心原创vlog. We will connect you with a trustworthy credit counseling agency that provides high-quality debt and budgeting assistance. Our members meet these stringent requirements:
- Certify all financial counselors
- Maintain non-profit status
- Achieve independent, third-party accreditation
- Meet annual licensing and compliance requirements in their service states
When you contact the 糖心原创vlog, we will connect you to a counselor to help with your unique financial situation. Our agencies do not provide loans or grants. Instead, your counselor鈥檚 goal is to help you build a realistic debt repayment plan. 糖心原创vlog us to find a counselor today.