Texas, Louisiana, Nevada, Kentucky and Florida are the top five states where Americans are struggling the most with their debt, according to a WalletHub study.
As of the end of the third quarter, approximately 7.8 million Americans were late on their payments on at least one of their credit accounts, according to the report, titled “States With the Most People in Financial Distress.”
The report’s goal is to shed light on the financial troubles experienced by people across the U.S., and to show where those difficulties are most pronounced.
“Millions of Americans are having trouble making payments on their debts, which can lead to unsustainable interest, fees and credit score damage,” says Chip Lupo, analyst for WalletHub, in a statement. “The best strategies for getting current on your debt include strict budgeting that cuts your spending, transferring the balance to a new bank with a lower interest rate, and working out a debt management plan with your creditor.
“Texas is the state experiencing the most financial distress,” Lupo adds. “In the third quarter, 8.2 percent of the Lone Star State’s residents had at least one credit account in forbearance or with deferred payments. Texas also had the sixth-highest year-over-year increase in the share of people in financial distress. On top of that, Texans had an increase of 25.8 percent in non-business bankruptcy filings in the past year, the seventh-highest increase in the country.”
States with the least distressed borrowers included Alaska, Wyoming, Hawaii, New Hampshire and Vermont.
Photo: Andy Beales