Money Matters - States with the Most People in Financial Distress

With 8.8 million Americans having at least one credit account that is either delinquent or in forbearance, the personal-finance company WalletHub today released its latest report on the States with the Most People in Financial Distress. The report highlights where financial hardship is most widespread across the country and provides insight into the challenges many Americans continue to face.
 

Most Distressed	Least Distressed
1. Kansas	41. Idaho
2. Louisiana	42. Illinois
3. Florida	43. New Hampshire
4. Texas	44. Washington
5. South Carolina	45. Wisconsin
6. Wyoming	46. Michigan
7. Georgia	47. Vermont
8. California	48. Hawaii
9. North Carolina	49. Rhode Island
10. Kentucky	50. Maine

 

“Measuring the share of residents in financial distress is a good way to take the pulse of a state and see whether people are generally thriving or having trouble making ends meet. When you combine data about people delaying payments with other metrics like bankruptcy filings and credit score changes, it paints a good picture of the overall economic trends of a state.” 
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“Kansas is the state experiencing the most financial distress. In Q1 2026, Kansas had the 14th-most accounts per person in financial distress. Kansas also had the 20th-lowest credit score in the country, and some of the highest Google searches for “debt” and “loans”, which shows that many people are desperate to borrow, despite already owing money.”

- Chip Lupo, WalletHub Analyst  


More From WalletHub

• Cities With the Most People in Financial Distress
• Cities Where People Are the Most Delinquent on Debt
• States Where Credit Card Delinquency Is Increasing the Most
• States Where Auto Loan Delinquency Is Increasing the Most