The world's eighth-largest economy isn't a country — it's Texas. Bigger than most nations in GDP, the Lone Star State likes to market itself as unstoppable. But behind the bravado, Texans are struggling more than anyone else in America to keep up with their bills.
A new analysis from WalletHub shows Texas ranks No. 1 in financial distress, with Florida not far behind at No. 2. Together, the two powerhouse states are home to millions of residents who are increasingly turning to Google for answers — and the most common searches are simply "debt" and "loans."
"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," explained WalletHub analyst Chip Lupo. "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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Texas: A Surprising No. 1
Texas may boast booming energy, tech, and housing markets, but many households are on shaky ground. The state recorded the ninth-lowest average credit score in the nation in the first quarter of 2025, according to WalletHub's analysis. Roughly 7.1% of Texans had accounts in forbearance or deferred payments, placing them near the top for financial hardship.
Bankruptcy filings are also surging. Non-business bankruptcies jumped more than 22% in Texas over the past year, the sixth-highest increase in the country. Pair that with soaring Google searches for "debt" and "loans," and the message is clear: many Texans are desperate to borrow despite already owing.
Florida: Second Place in Distress
If Texas is in the deepest distress, Florida isn't breathing much easier. WalletHub found that Florida ranks second in the nation, with residents posting one of the steepest year-over-year increases in accounts classified as distressed. In the Q1 2025, about 7.3% of Floridians had accounts in forbearance or deferred payment status, one of the highest rates nationwide.
That makes the Sunshine State's finances look a lot cloudier. Despite being one of the fastest-growing states, with a booming real estate market and steady influx of new residents, more Floridians are struggling to keep up with payments.
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Louisiana: Struggles Pile Up
Louisiana landed in third place, ranking among the top states for Google searches related to "loans." Nearly 12% of residents there have an account in forbearance — the highest share in the country. The state also holds the third-lowest average credit score nationwide, cementing its place near the top of the list for financial distress.
The Mid-Tier Picture
Not every state is at the top of the list, but that doesn't mean residents are thriving. Nevada ranked fourth, while South Carolina rounded out the top five. Other Southern states made frequent appearances in the top 10, including Oklahoma (6th), North Carolina (7th), Mississippi (8th), Kentucky (9th), and Alabama (10th).
These states share a pattern: weaker average credit scores, higher percentages of accounts in forbearance, and in many cases, sharp increases in bankruptcy filings. Mississippi, long considered one of the nation's poorest states, was eighth overall — but even that wasn't enough to eclipse Texas and Florida's financial struggles.
Further down, some larger economies landed squarely in the middle. California came in at 12th, with rising distress despite its size and wealth. New York ranked 19th, just above Arkansas at 20th. Pennsylvania, one of the nation's most populous states, was mid-pack at 32nd. These rankings show that financial distress isn't confined to small states or rural regions — it cuts across geography and political lines.
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The Least Distressed States
At the very bottom of the list are the states where residents are struggling the least — though "least distressed" doesn't mean entirely stress-free. Hawaii finished dead last at 50th, despite high costs of living, suggesting residents have managed to keep their accounts steadier than elsewhere. Vermont, Alaska, and Oregon also ranked near the bottom, joining New Mexico and West Virginia in the lower tier.
New Jersey landed at 44th, Maine at 43rd, and Maryland at 42nd, proving that even expensive Northeastern states managed to avoid the worst levels of distress. In contrast, Midwestern states like Iowa at 22nd and Minnesota at 28th fared relatively well compared to their Southern counterparts.
Why the Divide?
WalletHub's analysis considered nine different metrics, from credit scores to bankruptcy filings to Google search trends. Inflation and lingering pandemic impacts hit households differently depending on where they live, and natural disasters — from hurricanes in Florida to wildfires in the West — add to the financial strain.
Red states dominated the top of the distress list, though WalletHub stressed the issue cuts across politics and geography. What's clear is that residents in Texas and Florida, two states often seen as economic engines, are among the most likely to be behind on bills and searching online for solutions.
And those searches aren't complicated: "debt" and "loans."
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