Money troubles are hitting Americans hard, and although the numbers are sad, they are not in the least bit surprising.
A new WalletHub study found that nearly 9 million people across the country are behind on at least one credit card payment or have had to ask for payment delays because they simply can’t keep up. But through it all, some states are being hit harder than others.
Now the who, instead of the why may be the most sobering, because the results probably don’t match what you’d expect.
Firstly, if you guessed Texas would top the list, you’d be right.
Now, I know they say everything’s bigger in Texas, and in this case, that also means debt. You’d think a state with its booming economy (and that’s literally bigger than most countries), would be doing fine financially. But this just shows, economic status doesn’t mean much when your residents are drowning in debt. The contradiction is how macro-economic success can mask widespread personal financial struggles happening at the household level.
“Texas is the state experiencing the most financial distress, which is demonstrated by the fact that residents had the ninth-lowest average credit score in the country in Q1 2025,” says Chip Lupo, WalletHub Analyst.
Texas also had the third-highest number of accounts in forbearance or with deferred payments per person, and the seventh-highest share of people with these distressed accounts, at 7.1%, according to results from the study.
The financial stress in Texas also spills into bankruptcy filings, which jumped 22% in just one year and is the sixth-highest increase nationwide. People there are constantly searching Google for “debt” and “loans,” which just goes to show that they’re desperate to borrow money even when they already owe too much. This search behavior also would leave one to believe that residents are running out of traditional financial options and turning to the internet for solutions, often while already carrying substantial debt loads.
Florida comes in close second, with about 7.3% of residents having troubled accounts, placing the state sixth nationally for this metric. The speed of deterioration is the most alarming because that number shot up almost 23% between early 2024 and early 2025, representing the second-largest increase in the country. Economic pressures are hitting Florida residents hard and fast, and it’s sure to be a slippery slope.
Now if you guessed the number three spot would be another red state, you are in fact seeing the trend here. Nearly 12% of residents in Louisiana have accounts in forbearance or with deferred payments, which is the highest rate in the country.
Louisiana also has the third-lowest credit score nationwide and leads in the average number of problem accounts per person. When people have multiple accounts in trouble simultaneously, that indicates a different level of financial crisis than just temporary cash flow issues. It suggests systemic problems with income, expenses, or both that go beyond individual financial mismanagement.
The study examined all 50 states across nine key metrics within six categories: credit scores, people with distressed accounts, average number of distressed accounts, changes in bankruptcy filings comparing March 2024 to March 2025, and search frequency for both “debt” and “loans.”
The biggest takeaway here? Red states generally experience higher levels of financial distress compared to blue states, but we’re going to say the quiet part out loud: This political divide in financial wellness raises questions about policy impacts, economic structures, and safety net availability across different regions that many of us could have predicted back in November.
While many don’t believe politics will impact their finances, this is proof that political leadership and policy choices may influence residents’ financial outcomes in measurable ways. But we don’t want to be the ones to tell (them), I told you so.