money woes
Houston has 2nd most financially distressed residents in America

Houstonians are feeling financial stress in 2026.
A new study has confirmed what many Houston residents are already feeling: Houston has one of the highest shares of people in financial distress in the nation.
Houston ranked No. 2 in WalletHub's just-released report, "Cities with the Most People in Financial Distress," which analyzed 100 of the largest U.S. cities across nine personal finance metrics: average credit scores and year-over-year changes; the share of residents with accounts in distress and year-over-year changes; the average number of accounts in distress; year-over-year change in bankruptcy filings from September 2024 to September 2025; and "debt" and "loans" search interest indexes.
For the purpose of this study, WalletHub defined "financial distress" as having a credit account in forbearance or with deferred payments.
Chicago, Illinois led the nation with the No. 1 most financially distressed residents, and Las Vegas, Nevada rounded out the top three.
According to the report's findings, Houston residents signaled a "strong need for borrowing" after having the highest search interest nationally for terms like "debt" and "loans." Houstonians also had the 10th highest increase in bankruptcy filings from September 2024 to September 2025.
"Houston has a high share of the population with accounts in distress compared to most other cities, at over 8 percent, and it also has a high number of accounts in distress per person," the report said.
Here's how WalletHub broke down the rest of Houston's overall ranking:
- No. 32 – Credit score rank
- No. 35 – Average number of accounts in distress rank
- No. 39 – People with accounts in distress rank
"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," Lupo said.
Though no Texas city is feeling the financial squeeze as much as Houston, three more of the state's biggest cities also ranked among the top 10 most financially distressed places in America: Dallas (No. 4), San Antonio (No. 6) and Austin (No. 9). Fort Worth ranked 12th overall.
The top 10 most financially distressed cities in the nation are:
- No. 1 – Chicago
- No. 2 – Houston
- No. 3 – Las Vegas
- No. 4 – Dallas
- No. 5 – Los Angeles
- No. 6 – San Antonio
- No. 7 – Atlanta
- No. 8 – New York
- No. 9 – Austin
- No. 10 – Phoenix


