With prices that increase everything, from messages to rent in the midst of a background of economic uncertainty, many Americans have difficulty paying the bills.
They even turned to credit to pay for essence. A recent LendingTree study showed that a quarter (25%) of Buy-Now-Pay-Later users used these loans to buy groceries.
But some states struggle more than others. Florida is now one of the most financially stressed states in the country, only second place in another southern state, according to a new Wallethub report, which defines financial need as a credit in tolerance or postponing payments due to financial difficulties.
“When you combine data about people who postpone payments with other statistics such as bankruptcy applications and changes to the credit score, it paints a good picture of the general economic trends of a state,” said Wallethub analyst Chip Lupo about the findings.
Here are the five states that struggle most and why people are so difficult.
Texas is the most financially distracting state in the country, followed by Florida, Louisiana, Nevada and South Carolina. The states that are best off? That honor goes to Hawaii, followed by Vermont, Alaska, Oregon and New Mexico.
To determine their ranking, Wallethub compared all 50 states in nine important statistics in six categories, whereby a general score was calculated by weighing the average in all statistics. The 'credit score' category is determined, for example, by two important statistics: the average credit score earned double weight from March, while the change in credit score from March 2024 to March 2025 earned the full weight.
As soon as all the figures had been cracked, Texas came at the top – and in this case no. 1 means the most ailing or worst – although the state has a larger GDP than most countries (in ninth place on the world stage). And it still has one of the top 10 economies in the US
Texans are looking for Google for 'debts' and 'loans' at a high rate, “which shows that many people are desperate to borrow, even though they are already owing money,” says the Wallethub report. They are also in sixth place in the change in the number of bankruptcy applications from March 2024 to March 2025, with non-business bankruptcy applications that increase by more than 22% in the past year.
In general, Florida was the second most financially distracting state in the country and ranked no. 1 in the proportion of people with accounts in financial need and number 2 in the average number of accounts per person in need. Florida had the ninth worst credit score in the country; An earlier Wallethub study showed that Floridians have the second highest credit delinquency national.
In the third place, Louisiana, which was above Florida, was for the average number of accounts in need – the number 1 place – and above Texas in the ranking of the 'Loans' Search Index (at number 2). “About 11.8% of Louisianians also have a credit account in tolerance or with deferred payments, the highest share in the country,” said Wallethub.
Nevada, who came to number 4, had the third worst credit score in the country (the first place went to Montana), while South Carolina, at number 5 in general, was strongly arranged in the number of people with accounts in financial need and average number of accounts in need.
Regarding the least financially distracting states? Hawaii was the winner here, although the state had the fourth worst credit score. But it performed well in all other categories and, unlike Texas, it was the state with the least number of people looking for 'debts' and 'loans'.
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Although states such as Texas and Florida are most struggling, all states struggle to a certain extent. Of the five states that were considered the least financially sad in the Wallethub study, three of them (Hawaii, Vermont and New Mexico) were not doing well with their credit score.
Indeed, the lower 60% of American households (due to income) indeed fall short of the threshold for a minimum quality of life, according to a Ludwig Institute for Shared Economic Prosperity (Lisep) analysis. (The analysis takes into account essential supplies, such as food and shelter, as well as basic fear costs, such as streaming subscriptions.)
It points to the fact that wages have not kept rising costs – for example, medical premiums rose 301% from 2001 to 2023 and the rent has increased by 131%.
If you have trouble making ends meet, start making a budget, so that you have a clear idea of how you spend your money (and where you can cut back).
If you are behind you when paying your bills, be proactive. “Do it before a debt collector becomes involved. Tell your creditors what is going on and try to work out a new payment plan with lower payments that you can manage,” said the advice of the Federal Handels Commission.
The same applies to mortgage payments. If you are struggling, contact your lender before they exclude your house. If you act in good faith, your lender can temporarily lower or postpone your payments to extend your reimbursement period (which means that lower total payments).
When it comes to credit card debt, you want to make at least the minimum payments every month, so that your credit score does not take a hit. But because the interest rates are so high on an average of about 24%-you will concentrate on paying this as quickly as possible, together with other debts with high-interest. You can do this through debt reduction strategies such as snowball or avalanche methods.
Perhaps you also want to find additional sources of income, whether that is a performance on a side, being aware of a higher paying role or new job, or looking for passive income, such as renting out a room in your house.
Digging yourself out of debt is not easy, but there are resources that can help, including low-fee credit counseling services. For housing challenges you can contact a free, HUD-certified counselor for advice via your local US Department of Housing and Urban Development Office.
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This article only offers information and may not be conceived as advice. It is provided without any form of warranty.
