Cities with the Most People in Financial Distress
Adam McCann, WalletHub Financial WriterFeb 19, 2025In 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 FindingsIn-Depth Look at the Most Financially Distressed CitiesTips for Getting Out of Financial DistressMethodology
Main Findings
Embed on your websiteCities 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 |
