A recent WalletHub report highlights Houston, Atlanta, and Jacksonville as the top three U.S. cities grappling with financial distress.
The analysis, which evaluated criteria like average credit scores, changes in bankruptcy rates, and the prevalence of overdrawn accounts, reveals that Houston leads with over 9% of its population facing financial challenges, reported Fox 4 KDFW.
Jacksonville, in particular, stands out, with nearly 16% of its residents experiencing account distress, the highest percentage nationwide. Atlanta also witnessed a significant spike of over 36% in distressed accounts within a year.
According to WalletHub analyst Chip Lupo, escaping financial distress can be challenging. Lupo emphasizes that while some individuals may receive temporary relief on payments from lenders, accruing interest may complicate repayment efforts further. He recommends that those experiencing financial hardship adopt careful budgeting practices, cut unnecessary expenses, and consider options like debt consolidation or management to regain control of their finances.
Here is the rest of the story from Fox, including the full list of cities with the most people in financial distress:
Americans have faced financial challenges in recent years, including periods of high inflation and unemployment. While some of these stressful economic conditions have eased, many households still have financial stress.
Analyzing factors like average credit scores, the change in bankruptcy filings, and the share of people with accounts in the red, WalletHub ranked the top 100 major U.S. cities with the most people in financial distress.
US cities with most people in financial distress
What we know:
Houston, Atlanta, and Jacksonville were ranked as the top three cities with the most people in financial distress – in that order, according to WalletHub.
Houston was found to have a high share of the population with accounts in distress compared to most other cities (over 9%), and it also has some of the highest Google search interest in the country for terms like “debt” and “loans,” the report added. Atlanta had the sixth-biggest change in the share of people who had accounts in distress between Q4 2023 and Q4 2024, with over a 36% increase, according to WalletHub. Meanwhile, nearly 16% of Jacksonville residents were found to have accounts in distress, the highest percentage in the nation, along with the highest number of distressed accounts per person, the report said.
What they’re saying:
“Getting out of the downward spiral of financial distress is no easy feat,” WalletHub analyst Chip Lupo said in a statement. “You may get temporary relief from your lenders by not having to make payments, but all the while interest will keep building up, making the debt even harder to pay off.”
“People who find themselves in financial distress should budget carefully, cut non-essential expenses, and pursue strategies like debt consolidation or debt management to get their situation under control,” Lupo added.
FILE – In this photo illustration the Visa, Mastercard and American Express logo on various credit cards and debit cards are seen beside US one dollar bills on Dec. 22, 2024. (Photo Illustration by Anna Barclay/Getty Images)
Dig deeper:
Late last year, WalletHub also conducted this analysis by state and found that Texas, Louisiana, Nevada, Kentucky and Florida ranked as the top five with the most financially-distressed residents.
By the numbers:
Here are the top 25 US cities, according to WalletHub’s ranking:
- Houston, TX
- Atlanta, GA
- Jacksonville, FL
- Dallas, TX
- Charlotte, NC
- Orlando, FL
- San Antonio, TX
- Tampa, FL
- Miami, FL
- Austin, TX
- Los Angeles, CA
- Las Vegas, NV
- New York, NY
- San Diego, CA
- Chicago, IL
- Fort Worth, TX
- Phoenix, AZ
- Detroit, MI
- Nashville, TN
- Denver, CO
- New Orleans, LA
- Garland, TX
- Riverside, CA
- Louisville, KY
- Philadelphia, PA
