Experiencing monetary strife is a nightmare of many People, but it surely seems to be a looming actuality for Texans, in accordance with a just-released WalletHub research rating Texas the No. 1 most “financially distressed” state in America.
To find out the states with essentially the most financially distressed residents, WalletHub in contrast all 50 states throughout 9 metrics in six main classes, akin to common credit score scores, the share of individuals with “accounts in misery” (that means an account that is in forbearance or has deferred funds), the one-year change in chapter filings from March 2024, and search curiosity indexes for “debt” and “loans.”
Becoming a member of Texas among the many high 5 most distressed states are Florida (No. 2), Louisiana (No. 3), Nevada (No. 4), and South Carolina (No. 5).
Texas’ new rating as essentially the most financially distressed state in 2025 could also be sudden, WalletHub says, contemplating the state has a “larger GDP than most nations” and nonetheless has one of many high 10 greatest economies within the nation (despite the fact that that rating can also be decrease than it was in earlier years).
Even so, Texas residents are stretching themselves very skinny financially this yr. Texans had the ninth lowest common credit score scores nationwide through the first quarter of 2025, the research discovered, and Texans had the sixth-highest enhance in non-business-related chapter filings over the past yr, toppling 22 %.
“Texas additionally had the third-highest variety of accounts in forbearance or with deferred funds per particular person, and the seventh-highest share of individuals with these distressed accounts, at 7.1 %,” the report mentioned.
That is the place Texas ranked throughout the research’s six key dimensions, the place No. 1 means “most distressed:”
No. 5 – “Loans” search curiosity index rankNo. 6 – Change in chapter filings from March 2024 to March 2025 rankNo. 7 – Common variety of accounts in misery rankNo. 8 – Folks with accounts in misery rankNo. 13 – Credit score rating rank and “debt” search curiosity index rank
The research additionally clarified that the state’s excessive search charges for “debt” and “loans” is a key indication that Texans are “determined to borrow, regardless of already owing cash.”
Inspecting these monetary components on the state stage is essential for understanding how People are faring with financial points like inflation, unemployment charges, or pure disasters, in accordance with WalletHub analyst Chip Lupo.
“While you mix information about folks delaying funds with different metrics like chapter filings and credit score rating modifications, it paints a very good image of the general financial developments of a state,” Lupo mentioned.
On the opposite facet of the spectrum, states like Hawaii (No. 50), Vermont (No. 49), and Alaska (No. 48) are the least financially distressed states in America.
The highest 10 states with the most individuals in monetary misery in 2025 are:
No. 1 – TexasNo. 2 – FloridaNo. 3 – LouisianaNo. 4 – NevadaNo. 5 – South CarolinaNo. 6 – OklahomaNo. 7 – North CarolinaNo. 8 – MississippiNo. 9 – KentuckyNo. 10 – Alabama
