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With prices rising on everything from groceries to rent amid an economic backdrop of uncertainty, many Americans are struggling to pay their bills.
They’re even turning to credit to pay for essentials. A recent LendingTree survey [1] found that one-quarter (25%) of buy-now-pay-later users have used these loans to buy groceries.
But some states are struggling more than others.
Florida is now one of the most financially stressed states in the country, ranked second only to another Southern state, according to a new report by WalletHub [2]. The report defines financial distress as having credit in forbearance or deferring payments due to financial difficulty.
“When you combine data about people delaying payments with other metrics like bankruptcy filings and credit score changes, it paints a good picture of the overall economic trends of a state,” WalletHub analyst Chip Lupo said about the findings.
Here are the five states struggling the most and why people there are having such a tough time.
According to WalletHub’s analysis of nine financial metrics across all 50 states, Texas ranks as the most financially distressed state in the U.S., followed by Florida, Louisiana, Nevada and South Carolina.
Texas, despite having a GDP larger than most countries — coming ninth globally according to Visual Capitalist [3] — also led the nation in Google searches for “debt” and “loans” while experiencing a sharp rise in bankruptcy filings, based on the WalletHub report [2].
Florida ranked second overall, topping the list for the share of people with accounts in distress and having one of the nation’s worst average credit scores.
Louisiana came in third, with the highest average number of accounts in distress and the largest share of residents with accounts in forbearance. Nevada had the third-worst credit score, while South Carolina showed high levels of account distress.
As for the least financially distressed states? They are Hawaii, Vermont, Alaska, Oregon and New Mexico.
Hawaii was the winner here, despite having the fourth-worst credit score ranking. However, it performed well in all other categories, and, unlike Texas, it was the state with the fewest number of people searching Google for “debt” and “loans.”
Read more: Rich, young Americans are ditching stocks — here are the alternative assets they’re banking on instead
Financial strain is widespread across the U.S. — even states considered the least distressed, like Hawaii and Vermont, show weak credit scores. A Ludwig Institute for Shared Economic Prosperity study [4] revealed that 60% of households fall below the minimum standard for a decent quality of life, factoring in essentials and modest leisure.
The core issue: Wages haven’t kept pace with soaring costs, including a 301% rise in medical premiums and a 131% jump in rent since 2001.
What’s more, over the past 25 years, the total cost of employer-provided family medical coverage has risen by 314%, with worker contributions climbing even higher — up 326%, according to the National Library of Medicine [5].
If you’re having trouble making ends meet, like many Americans, you could try applying the following money principles:
Start with a budget: Understand your spending and identify areas to cut back.
Contact creditors and mortgage lenders early: They may offer deferred payments or an extended repayment term.
Tackle high-interest debt: Make at least the minimum payment on credit cards to protect your credit, but prioritize aggressively paying down high-interest debt. Long-term, aim for a credit utilization rate of less than 10% if you can.
Boost your income: Take on a side gig, reskill for a better job or rent out a room if possible.
Cut home insurance costs: Homeowners’ insurance premiums have surged by double digits over the past two years, with a cumulative increase of over 40.4% since 2019, based on a report by LendingTree [6].
Regularly shopping around and comparing rates can also be helpful.
OfficialHomeInsurance.com can take the hassle out of shopping for home insurance. In just under two minutes, you can explore competitive rates from top insurance providers, all in one place — and saving an average of $482.
With OfficialHomeInsurance.com, you can easily find the coverage you need at a price that can fit your budget.
But shopping around for home insurance is only the first step to putting a bit of extra money back in your pocket. You car insurance can also be another major monthly cost, and rates are rising too.
Shop for lower auto insurance: Between 2020 and 2024, motor vehicle insurance rates rose by a staggering 54%, according to reporting by USA Facts using Bureau of Labour Statistics data [7]. But, like with home insurance, shopping around and bundling can lead to substantial savings.
OfficialCarInsurance.com lets you compare quotes from trusted brands — including Progressive, Allstate and GEICO — to make sure you’re getting the best deal. Their matchmaking system takes into account your location, vehicle details and driving history to find you the lowest rate possible.
Deals start at just $29 per month, and you can switch over your policy in only a few minutes,
Automate your savings: If you’re struggling to save, you could set up recurring, automatic investments using a robo advisor tailored to your risk tolerance. One option is to work with a service that invests your spare change automatically with every purchase.
That’s where Acorns can help. With Acorns, every purchase — from a $4.25 coffee to your monthly cell phone bill — is rounded up to the nearest dollar when made with a linked credit or debit card. Over time, those small amounts can grow into meaningful savings.
And the best part? If you sign up with a recurring monthly deposit Acorns can give you an extra $20 to start your investing journey.
If you prefer a savings account to investing — robo investor or otherwise — make sure that you’re getting the best rates you can find.
One way to do this is to swap from a standard savings account to a high-yield savings account, or HYSA. The rate on traditional savings accounts was 0.39%, according to the Federal Deposit Insurance Corporation [8]. Meanwhile, some HYSAs can offer APYs of 4.00%. Just keep an eye out for any account balance minimums to avoid fees and capitalize on the best rates for you.
It’s no secret that money stress weighs heavily on many — over 52% of U.S. adults worry about money every day, according to Ramsey Solutions [9]. But the path out of financial strain starts with small, intentional steps.
Cut where you can, build smarter habits, and make use of tools designed to help. The key is to start now.
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[1]. LendingTree. “BNPL Tracker: 41% of Users Late in Past Year, More Using Loans for Groceries”
[2]. WalletHub. “States with the Most People in Financial Distress”
[3]. Visual Capitalist. “Mapped: The World’s Largest Economies, Including U.S. States”
[4]. Ludwig Institute for Shared Economic Prosperity. “Majority of Americans Can’t Achieve a Minimal Quality of Life, According to New Ludwig Institute Research”
[5]. National Library of Medicine. “Why does the cost of employer-sponsored coverage keep rising?”
[6]. LendingTree. “State of Home Insurance: 2025”
[7]. USA Facts. “Why are car insurance rates increasing?”
[8]. Federal Deposit Insurance Corporation. “National Rates and Rate Caps – August 2025”
[9]. Ramsey Solutions. “The State of Personal Finance in America Q2 2025”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.