Cities with the Most People in Financial Distress

Adam McCann, WalletHub Financial WriterFeb 19, 2025

Adam McCann, WalletHub Financial Writer
Feb 19, 2025

In recent years, Americans have faced significant financial challenges, from periods of high unemployment to high inflation. While economic conditions have improved, many individuals continue to experience financial distress. WalletHub defines financial distress as having a credit account in forbearance or with deferred payments, meaning the account holder has been granted temporary relief from making payments due to financial hardship.

To highlight where financial struggles are most prevalent, WalletHub analyzed the 100 largest cities without data limitations across nine key metrics. This analysis includes factors such as the average credit score, the change in bankruptcy filings between December 2023 and December 2024, and the share of people with accounts in distress.

You can also see where people are experiencing financial distress more broadly in WalletHub’s state-level report.

“Getting out of the downward spiral of financial distress is no easy feat. 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.”

Chip Lupo, WalletHub Analyst

Table of Contents

Main Findings

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Cities with the Most People in Financial Distress

Overall Rank*	City	Total Score	Credit Score Rank	People with Accounts in Distress Rank	Average Number of Accounts in Distress Rank	Change in Bankruptcy Filings December 2024 vs. December 2023 Rank	“Debt” Search Interest Index Rank	“Loans” Search Interest Index Rank
1	Houston, TX	76.44	18	7	6	59	5	1
2	Atlanta, GA	76.24	36	5	4	92	4	1
3	Jacksonville, FL	67.94	28	1	1	50	14	17
4	Dallas, TX	67.79	22	20	18	8	13	1
5	Charlotte, NC	66.65	6	1	1	26	25	25
6	Orlando, FL	65.32	47	1	1	23	25	25
7	San Antonio, TX	64.31	17	31	33	1	14	1
8	Tampa, FL	63.68	79	1	7	9	14	34
9	Miami, FL	61.91	98	10	22	19	5	13
10	Austin, TX	61.42	21	38	32	1	14	9
11	Los Angeles, CA	61.27	75	52	54	33	1	1
12	Las Vegas, NV	60.66	49	22	30	42	9	1
13	New York, NY	59.67	86	51	42	76	1	1
14	San Diego, CA	58.46	56	33	27	45	9	9
15	Chicago, IL	57.09	73	78	55	81	1	1
16	Fort Worth, TX	54.47	29	36	38	28	25	9
17	Phoenix, AZ	52.31	45	62	51	64	9	9
18	Detroit, MI	51.11	84	21	14	90	14	17
19	Nashville, TN	50.38	48	14	12	89	38	17
20	Denver, CO	48.92	65	84	46	18	14	13
21	New Orleans, LA	47.33	40	11	13	70	44	34
22	Garland, TX	46.52	10	18	15	7	89	66
23	Riverside, CA	46.37	71	47	57	21	5	48
24	Louisville, KY	46.35	41	9	8	97	38	34
25	Philadelphia, PA	46.21	60	73	59	54	5	25
26	Baton Rouge, LA	45.98	24	16	16	35	60	34
27	Irving, TX	45.82	42	25	9	12	78	55
28	Omaha, NE	45.22	37	12	10	58	44	66
29	Winston-Salem, NC	44.94	97	6	5	51	78	84
30	Indianapolis, IN	44.05	8	60	67	31	32	17
31	Raleigh, NC	43.93	1	35	35	24	32	48
32	Seattle, WA	43.58	67	93	74	16	9	30
33	Cleveland, OH	43.55	54	59	47	48	25	17
34	Plano, TX	43.50	15	30	20	5	60	79
35	El Paso, TX	43.48	11	56	68	80	32	13
36	Hialeah, FL	42.97	92	8	19	19	60	84
37	Memphis, TN	42.92	25	39	45	95	32	13
38	Sacramento, CA	41.92	83	70	71	6	25	30
39	Columbus, OH	41.62	68	61	64	71	25	17
40	North Las Vegas, NV	41.47	7	15	23	42	89	55
41	Laredo, TX	41.33	3	17	26	74	89	34
42	Arlington, TX	40.70	13	27	31	39	60	34
43	Reno, NV	40.59	64	29	36	1	78	70
44	Oklahoma City, OK	40.11	52	46	43	88	38	17
45	Birmingham, AL	39.92	46	23	34	79	38	34
46	Milwaukee, WI	39.58	20	63	58	60	44	17
47	San Jose, CA	39.57	77	91	86	15	14	34
48	Baltimore, MD	39.40	31	85	76	83	14	25
49	Washington, DC	39.29	55	69	65	47	14	34
50	Minneapolis, MN	38.90	59	88	94	13	25	34
51	Boston, MA	38.87	96	67	91	4	14	55
52	Greensboro, NC	38.22	5	28	25	56	60	70
53	Durham, NC	38.10	19	32	21	27	60	84
54	Spokane, WA	37.50	69	26	17	30	89	96
55	Des Moines, IA	37.31	74	13	11	91	78	84
56	Tulsa, OK	36.88	72	40	28	29	60	48
57	Fresno, CA	35.78	95	71	81	10	44	34
58	Irvine, CA	35.64	2	43	39	36	52	96
59	Cincinnati, OH	35.11	62	76	77	22	44	34
60	Henderson, NV	34.88	12	41	49	42	78	48
61	Albuquerque, NM	33.84	75	79	72	32	52	30
62	San Francisco, CA	33.76	81	97	93	41	14	48
63	Buffalo, NY	33.09	63	45	48	40	44	79
64	Chula Vista, CA	32.98	39	34	37	45	89	91
65	Corpus Christi, TX	32.96	44	19	29	98	89	34
66	Tucson, AZ	32.88	53	72	78	52	44	34
67	Virginia Beach, VA	32.69	14	49	66	49	52	66
68	Colorado Springs, CO	32.65	30	81	69	25	52	55
69	Lincoln, NE	32.16	61	24	24	84	89	96
70	Kansas City, MO	31.89	51	65	50	96	38	30
71	Pittsburgh, PA	31.80	34	68	63	53	38	70
72	Lubbock, TX	31.73	16	54	56	63	78	48
73	San Bernardino, CA	31.64	94	57	79	14	78	55
74	Richmond, VA	31.57	38	64	44	87	44	55
75	Chesapeake, VA	31.55	4	37	41	85	78	84
76	Long Beach, CA	31.49	82	53	73	33	52	55
77	St. Louis, MO	30.88	99	42	40	99	32	25
78	Bakersfield, CA	30.85	89	48	61	57	52	48
79	Mesa, AZ	30.75	27	58	70	64	60	55
80	Portland, OR	30.69	85	80	85	72	32	55
81	Aurora, CO	30.69	32	87	87	17	60	70
82	Gilbert, AZ	30.35	9	44	52	64	89	91
83	Anaheim, CA	29.46	70	66	62	36	60	70
84	Glendale, AZ	28.94	43	50	82	64	60	70
85	Newark, NJ	27.41	80	77	84	55	52	70
86	Norfolk, VA	27.37	33	55	98	73	60	70
87	Madison, WI	26.49	26	75	75	77	60	91
88	Toledo, OH	26.44	58	74	80	78	78	66
89	Boise, ID	26.25	35	100	100	11	89	70
90	Santa Ana, CA	25.99	90	83	90	36	60	79
91	Chandler, AZ	25.35	23	98	53	64	89	91
92	Oakland, CA	24.72	92	86	83	61	60	79
93	Jersey City, NJ	22.73	50	99	95	75	60	91
94	Honolulu, HI	22.55	88	92	96	82	52	84
95	Wichita, KS	22.40	78	89	92	94	78	55
96	Stockton, CA	22.32	91	96	97	86	78	55
97	Fremont, CA	22.22	66	95	99	61	60	100
98	Scottsdale, AZ	22.15	100	82	60	64	89	84
99	Fort Wayne, IN	21.73	57	94	88	93	60	79
100	Anchorage, AK	12.38	87	90	89	100	89	96

Note:*No. 1 = Most Distressed
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.

Change in Credit Score Q4 2024 vs. Q4 2023

Lowest

Lowest
1. Irvine, CA
2. Raleigh, NC
3. Gilbert, AZ
4. Chesapeake, VA
5. Charlotte, NC

Highest

Highest
T-95. Miami, FL
T-95. Detroit, MI
T-95. St. Louis, MO
T-95. Scottsdale, AZ
T-95. Winston-Salem, NC

Change in the Share of People with Accounts in Distress Q4 2024 vs. Q4 2023

Highest

Highest
T-1. Jacksonville, FL
T-1. Charlotte, NC
T-1. Orlando, FL
T-1. Omaha, NE
T-1. Tampa, FL

Lowest

Lowest
96. Jersey City, NJ
97. Stockton, CA
98. Chandler, AZ
99. Boise, ID
100. Chicago, IL

Change in the Average Number of Accounts in Distress per Panel User Q4 2024 vs. Q4 2023

Highest

Highest
T-1. Charlotte, NC
T-1. Jacksonville, FL
T-1. Orlando, FL
T-1. Atlanta, GA
T-1. Omaha, NE

Lowest

Lowest
96. Wichita, KS
97. Henderson, NV
98. Boise, ID
99. Norfolk, VA
100. Chicago, IL

Change in Number of Bankruptcy Filings - December 2024 vs. December 2023

Highest

Highest
T-1. Austin, TX
T-1. San Antonio, TX
T-1. Reno, NV
4. Boston, MA
5. Plano, TX

Lowest

Lowest
96. Kansas City, MO
97. Louisville, KY
98. Corpus Christi, TX
99. St. Louis, MO
100. Anchorage, AK

In-Depth Look at the Most Financially Distressed Cities

Houston, TX

Houston, we have a problem – and it’s that Houston is the city with the highest level of financial distress. Houston has a high share of the population with accounts in distress compared to most other cities, at over 9%, and it also has a high number of accounts in distress per person.

In addition, People in Houston also show some of the highest Google search interest in the country for terms like “debt” and “loans,” indicating a strong need for borrowing.

Atlanta, GA

Atlanta ranks second in terms of financial distress, in part because it had the sixth-biggest change in the share of people who had accounts in distress between Q4 2023 and Q4 2024, with over 36% increase. That means over 36% more residents were allowed to skip payments due to financial difficulty in 2024. In addition, Atlanta residents had the sixth-most accounts in distress per person.

Similar to Houston, Atlanta is also experiencing significant Google search activity for terms like “debt” and “loans,” which shows that people need to borrow even more.

Jacksonville, FL

Jacksonville City has the third-most financially distressed residents in the country, this is evident from the fact that nearly 16% of its residents are having accounts in distress, the highest percentage in the nation, along with the highest number of distressed accounts per person.

In addition, due to financial strain residents of Jacksonville were allowed to defer payments in 2024, as the city saw the biggest change in the share of people with accounts in distress between Q4 2023 and Q4 2024, marking a nearly 87% increase.

Tips for Getting Out of Financial Distress

Consider Hardship Programs: If your financial difficulties are temporary, you can ask your creditors about their “hardship programs.” These programs allow you to temporarily defer or reduce your monthly payments until you get back on your feet.
Try Debt Management: Debt management involves negotiating permanently better terms with your credit card issuer, such as lower monthly payments or a lower interest rate. Creditors want to get paid on time, so if you show a willingness to pay what you owe but express that you need a bit of relief to do so, you may be successful. You should avoid paying a debt management company, though, as you can set up a plan directly with your lender.
Avoid Easy Ways Out: You might be getting offers for various types of debt solutions, and it can be difficult to determine what’s legitimate and what’s not. A good rule of thumb is that if it seems too good to be true, it probably is. For example, debt settlement companies may promise to get you off the hook for pennies on the dollar, but they’ll also require you to default first and hurt your credit score further. They tend to charge expensive fees, too. You could propose a debt settlement offer to your lender directly, but most people in financial distress don’t have the money saved for a lump-sum payment.
Consolidate Your Debt: A debt consolidation loan can put all your debts in one place with a lower interest rate. Another similar option is a balance transfer credit card. In both cases, though, you'll typically need good or excellent credit to qualify for any decent options. You can qualify for a debt consolidation loan with lower credit scores – even bad credit, in some cases – but you won’t necessarily get an interest rate lower than the ones on your existing debts.
Avoid Predatory Lenders: It may be tempting to get quick, almost-guaranteed cash from a payday lender or auto title lender. But if you do, you’ll be slapped with exorbitant interest rates and fees that will make paying back the money a nightmare.
Budget Carefully: One way to have more money to pay your debts each month is to be stricter about your spending. Cut out any luxury purchases that you can, try to find better deals on your essential purchases, and put as much extra as you can toward paying your debts. In most cases, anything extra that you pay will help pay down the principal balance, rather than just interest, which helps you get out of debt more quickly.

Methodology

In order to determine the cities where people are in the most financial distress, 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 - December 2024 vs. December 2023, 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 each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.

Credit Score – Total Points: 16.66

Average Credit Score Q4 2024: Double Weight (~11.11 Points)
Change in Credit Score Q4 2024 vs. Q4 2023: Full Weight (~5.55 Points)

People with Accounts in Distress – Total Points: 16.66

Share of People with Accounts in Distress in Q4 2024: Full Weight (~8.33 Points)
Change in the Share of People with Accounts in Distress in Q4 2024 vs. Q4 2023: Full Weight (~8.33 Points)

Average Number of Accounts in Distress – Total Points: 16.66

Average Number of Accounts in Distress in Q4 2024: Full Weight (~8.33 Points)
Change in the Average Number of Accounts in Distress in Q4 2024 vs. Q4 2023: Full Weight (~8.33 Points)

Change in Bankruptcy Filings December 2024 vs. December 2023 – 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 as of [Month Day, Year] from the U.S. Census Bureau, Administrative Office of the U.S. Courts, Google Ads and WalletHub data.

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