Cities in the Most Financial Distress During COVID-19

Adam McCann, WalletHub Financial WriterDec 16, 2020

cities with the most people in financial distress during covid

Adam McCann, WalletHub Financial Writer
Dec 16, 2020

While the public-health impact of the COVID-19 pandemic remains a huge concern until we can provide widespread vaccination, it’s important to pay attention to how the disease has affected the financial status of people in cities across the U.S. The unemployment rate has been improving as the country reopens, but 10.7 million Americans are still out of a job. In addition, one survey estimates that nearly 69% of Americans would find it “somewhat difficult” or “very difficult” to meet their current financial obligations if their next paycheck were delayed for one week. However, people in some cities are faring better than others.

In order to take a deeper look into where people are struggling the most financially, WalletHub compared the 100 largest cities without data limitations across nine key metrics. Our data set includes factors like the change in the number of bankruptcy filings between September 2020 and September 2019, the average credit score and the share of people with accounts in distress.

Table of Contents

Main Findings

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Cities with the Most People in Financial Distress During COVID-19

Overall Rank*	City	Total Score	Credit Score	People in Distress	Average Number of Accounts in Distress	Change in Bankruptcy Filings	Search Interest for Debt	Search Interest for Loans
1	Las Vegas, NV	78.77	5	5	2	28	11	1
2	Phoenix, AZ	72.03	1	59	50	17	6	8
3	Chicago, IL	70.57	12	38	25	80	1	1
4	Miami, FL	67.64	81	48	81	14	1	8
5	San Antonio, TX	65.92	24	11	27	78	11	1
6	Los Angeles, CA	65.38	52	78	91	37	1	1
7	Fort Worth, TX	64.72	28	17	17	57	17	8
8	Houston, TX	64.70	62	40	40	91	1	1
9	Dallas, TX	63.97	33	51	67	67	6	1
10	Austin, TX	62.74	63	2	10	62	17	13
11	Orlando, FL	62.44	70	15	23	4	17	13
12	Detroit, MI	58.84	23	50	38	35	24	12
13	San Diego, CA	57.71	59	53	85	9	6	23
14	Jacksonville, FL	57.60	54	18	22	58	17	13
15	Memphis, TN	57.36	11	14	39	95	32	8
16	Albuquerque, NM	57.34	30	30	15	2	53	30
17	New York, NY	57.08	72	80	99	92	1	1
18	Laredo, TX	55.34	25	3	6	56	38	44
19	St. Louis, MO	54.61	47	32	55	24	32	13
20	North Las Vegas, NV	54.55	26	4	1	28	85	63
21	Indianapolis, IN	54.48	2	62	62	50	32	13
22	Philadelphia, PA	53.50	4	69	46	99	6	13
23	Cleveland, OH	53.21	41	33	35	59	32	13
24	Denver, CO	52.73	32	95	87	8	11	23
25	Mesa, AZ	52.65	15	27	3	17	65	51
26	Tampa, FL	51.72	46	19	53	42	24	30
27	Atlanta, GA	50.50	83	39	66	83	11	13
28	Minneapolis, MN	50.38	55	65	65	11	17	37
29	Oklahoma City, OK	50.36	7	67	52	16	65	23
30	Birmingham, AL	49.83	19	31	21	27	65	37
31	Reno, NV	49.55	42	6	4	13	85	81
32	Arlington, TX	49.29	50	25	19	61	38	30
33	Charlotte, NC	49.26	56	42	20	96	11	23
34	Baltimore, MD	48.55	38	54	59	74	17	30
35	Kansas City, MO	48.29	35	29	11	86	38	23
36	Cincinnati, OH	48.25	44	22	61	48	38	30
37	Milwaukee, WI	47.90	64	47	31	82	32	13
38	San Jose, CA	47.84	75	99	72	60	6	30
39	Des Moines, IA	47.44	31	10	13	12	85	89
40	Columbus, OH	47.39	51	26	43	72	38	23
41	Tucson, AZ	46.99	8	75	32	63	38	37
42	Baton Rouge, LA	46.97	73	1	5	87	76	37
43	Glendale, AZ	46.96	10	28	18	17	85	81
44	El Paso, TX	46.75	71	49	45	90	24	13
45	Louisville, KY	46.71	21	52	78	33	32	44
46	Nashville, TN	46.55	58	12	16	88	53	23
47	Sacramento, CA	46.41	9	96	73	43	24	37
48	Corpus Christi, TX	46.35	16	7	9	89	76	44
49	Richmond, VA	45.32	89	43	44	3	65	44
50	Henderson, NV	45.21	77	8	8	28	76	81
51	Seattle, WA	44.87	91	89	69	46	11	37
52	Washington, DC	44.28	40	46	56	81	24	37
53	Honolulu, HI	44.19	95	55	94	1	24	81
54	San Bernardino, CA	43.89	3	70	70	31	76	51
55	Fort Wayne, IN	43.50	53	36	28	7	85	73
56	Winston-Salem, NC	43.29	61	9	80	5	96	81
57	Tulsa, OK	43.20	37	60	74	25	65	44
58	Spokane, WA	42.18	34	13	7	70	96	91
59	Lubbock, TX	42.13	22	68	47	26	96	51
60	Portland, OR	42.10	36	87	86	41	24	51
61	Long Beach, CA	41.62	57	73	48	37	38	51
62	Norfolk, VA	41.53	6	76	51	44	76	63
63	Omaha, NE	41.47	39	81	95	6	38	63
64	Garland, TX	41.20	68	16	12	71	85	63
65	Bakersfield, CA	40.94	18	83	79	45	53	51
66	New Orleans, LA	40.92	43	23	42	97	65	30
67	Raleigh, NC	40.54	74	45	24	79	38	44
68	Greensboro, NC	40.44	66	21	41	84	38	51
69	Chandler, AZ	40.33	67	34	33	17	96	89
70	Stockton, CA	39.98	13	92	63	36	65	63
71	Hialeah, FL	39.82	49	56	90	14	65	73
72	Pittsburgh, PA	39.41	76	79	60	23	38	73
73	Irving, TX	39.40	82	20	14	77	76	51
74	Aurora, CO	39.23	48	72	77	40	53	63
75	Toledo, OH	39.09	29	61	54	47	85	63
76	Virginia Beach, VA	39.05	84	58	34	39	65	63
77	Fresno, CA	38.52	14	93	92	65	38	51
78	Colorado Springs, CO	37.84	65	84	97	32	53	44
79	Gilbert, AZ	37.35	97	24	30	17	85	99
80	San Francisco, CA	37.24	85	97	76	75	17	51
81	Buffalo, NY	37.24	27	37	37	98	38	73
82	Riverside, CA	37.19	60	82	96	49	38	51
83	Plano, TX	37.14	96	44	26	55	53	73
84	Oakland, CA	36.18	45	77	75	68	53	73
85	Wichita, KS	35.94	17	88	84	73	76	51
86	Anaheim, CA	35.22	92	64	68	51	53	73
87	Chula Vista, CA	35.07	80	66	88	9	85	91
88	Santa Ana, CA	33.82	87	90	82	51	53	63
89	Durham, NC	33.75	93	35	29	76	76	81
90	Chesapeake, VA	33.32	86	41	36	85	65	91
91	Newark, NJ	32.59	20	57	57	100	53	73
92	Boise, ID	32.12	90	71	64	64	76	81
93	Irvine, CA	32.10	100	63	83	51	38	81
94	Lincoln, NE	31.95	69	86	71	34	100	99
95	Boston, MA	30.68	94	74	98	93	24	63
96	Scottsdale, AZ	29.01	99	94	89	17	85	91
97	Anchorage, AK	27.51	79	98	93	54	85	91
98	Madison, WI	27.44	88	85	100	66	65	91
99	Jersey City, NJ	27.30	78	91	58	94	53	91
100	Fremont, CA	26.69	98	100	49	68	53	91

Note: With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that city, where a rank of 1 represents the worst conditions for that metric.

artwork covid distress by city

Ask the Experts

COVID-19 may be primarily a public-health issue, but there’s no denying its big financial impact. In order to help people in financial distress due to this pandemic, WalletHub turned to a panel of experts. Click on the photos of the experts below to read their bios and see their responses to the following key questions:

What will be the long-term impact of unemployment spikes and the inability to pay debt on the recovery of the credit market?
What tips do you have for people looking to improve their credit scores?
As access to credit has become more difficult, what options are there for low-income individuals who desperately need support at the moment?
What should be the main points of an efficient plan that will facilitate a quick and healthy market recovery?

Ask the Experts

Michael Manahan
MBA – Author and Consultant, Lecturer – Accounting and Finance – California State University Dominguez Hills
Read More

David W. Leapard
Ph.D. – Emeritus Professor – Eastern Michigan University
Read More

John J. Bethune
Ph.D. – Professor of Economics; Director, BB&T Center for Economic Education – Barton College
Read More

Alexis G. Montecinos Bravo
Assistant Professor, Finance – Suffolk University
Read More

Vickie Hampton
Ph.D., CFP® – Professor & Chair, Department of Personal Financial Planning – Texas Tech University
Read More

Carolyn Reichert
Ph.D. – Clinical Associate Professor, Finance and Managerial Economics; Director, Master of Science in Finance Program; Jindal School of Management – The University of Texas at Dallas
Read More

More Experts

Methodology

In order to determine the cities where people are in the most financial distress during COVID-19, WalletHub compared the 100 largest cities without data limitations across nine key metrics in six overall categories: 1) Credit Score, 2) People with Accounts in Distress, 3) Average Number of Accounts in Distress, 4) Change in Number of Bankruptcy Filings - September 2020 vs. September 2019, 5) “Debt” Search Interest Index and 6) “Loans” Search Interest Index. WalletHub defines an account in distress as one which either is in forbearance or has its payments deferred.

We then determined the weighted average across all metrics to calculate an overall score for each city and used the resulting scores to rank-order our sample.

Credit Score – Total Points: 16.66

Average Credit Score in November: Double Weight (~11.11 Points)
Change in Credit Score - November vs. January: Full Weight (~5.55 Points)

People with Accounts in Distress – Total Points: 16.66

Share of People with Accounts in Distress in November: Full Weight (~8.33 Points)
Change in the Share of People with Accounts in Distress - November vs. January: Full Weight (~8.33 Points)

Average Number of Accounts in Distress – Total Points: 16.66

Average Number of Accounts in Distress in November: Full Weight (~8.33 Points)
Change in the Average Number of Accounts in Distress - November vs. January: Full Weight (~8.33 Points)

Change in Number of Bankruptcy Filings – September 30, 2020 vs. September 30, 2019 – Total Points: 16.66

“Debt” Search Interest Index – Total Points: 16.66

“Loans” Search Interest Index – Total Points: 16.66

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Administrative Office of the U.S. Courts, Google Ads and WalletHub data.

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