in this economy?

Texas ranks as No. 1 most 'financially distressed' state in America

Texans are stretched thin financially.

Experiencing financial strife is a nightmare of many Americans, but it appears to be a looming reality for Texans, according to a just-released WalletHub study ranking Texas the No. 1 most "financially distressed" state in America.

To determine the states with the most financially distressed residents, WalletHub compared all 50 states across nine metrics in six major categories, such as average credit scores, the share of people with "accounts in distress" (meaning an account that's in forbearance or has deferred payments), the one-year change in bankruptcy filings from March 2024, and search interest indexes for "debt" and "loans."

Joining Texas among the top five most distressed states are Florida (No. 2), Louisiana (No. 3), Nevada (No. 4), and South Carolina (No. 5).

Texas' new ranking as the most financially distressed state in 2025 may be unexpected, WalletHub says, considering the state has a "bigger GDP than most countries" and still has one of the top 10 best economies in the nation (even though that ranking is also lower than it was in previous years).

Even so, Texas residents are stretching themselves very thin financially this year. Texans had the ninth lowest average credit scores nationwide during the first quarter of 2025, the study found, and Texans had the sixth-highest increase in non-business-related bankruptcy filings over the last year, toppling 22 percent.

"Texas also had the third-highest number of accounts in forbearance or with deferred payments per person, and the seventh-highest share of people with these distressed accounts, at 7.1 percent," the report said.

This is where Texas ranked across the study's six key dimensions, where No. 1 means "most distressed:"

No. 5 – "Loans" search interest index rank
No. 6 – Change in bankruptcy filings from March 2024 to March 2025 rank
No. 7 – Average number of accounts in distress rank
No. 8 – People with accounts in distress rank
No. 13 – Credit score rank and “debt” search interest index rank

The study also clarified that the state's high search rates for "debt" and "loans" is a key indication that Texans are "desperate to borrow, despite already owing money."

Examining these financial factors on the state level is important for understanding how Americans are faring with economic issues like inflation, unemployment rates, or natural disasters, according to WalletHub analyst Chip Lupo.

"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," Lupo said.

At least Houston isn't as expensive to live in as other Texas cities like Dallas or Austin.

On the other side of the spectrum, states like Hawaii (No. 50), Vermont (No. 49), and Alaska (No. 48) are the least financially distressed states in America.

The top 10 states with the most people in financial distress in 2025 are:

No. 1 – Texas
No. 2 – Florida
No. 3 – Louisiana
No. 4 – Nevada
No. 5 – South Carolina
No. 6 – Oklahoma
No. 7 – North Carolina
No. 8 – Mississippi
No. 9 – Kentucky
No. 10 – Alabama

innovation texas finance inflation economy wallethub

kick off your career

3 Houston neighbors hustle onto top 100 list of U.S. career hotspots

City of Pearland - Government/Facebook

All eyes are on Pearland.

Houston has already proven to be a major hub for business, and now three of its neighbors – Pearland, League City, and Sugar Land – are rising up among the best small U.S. cities for big career opportunities.

A new nationwide survey from CoworkingCafe ranked the three Houston-area cities among its top-100 career hotspots with populations under 250,000 residents.

According to the study, these standout U.S. suburbs "combine economic acceleration with day-to-day livability, offering residents both upward mobility and stable community fundamentals."

The top three small cities leading the nation for their high salaries and strong job markets are Alpharetta, Georgia (No. 1); South Jordan, Utah (No. 2); and Mountain View, California (No. 3).

Pearland ranked the highest in the Houston region, climbing up into No. 59, and League City and Sugar Land respectively ranked No. 73 and No. 76 nationally.

"Across the U.S., a new wave of cities with a more concentrated urban footprint is quietly turning into career powerhouses, even though we tend to associate that success with the big, bustling cities," the report's author wrote. "Some of the best opportunities are popping up in tight-knit communities where innovation, affordability and a great quality of life all come together."

If Houstonians are seeking affordability over all other factors, these three suburbs are the right places to be. Pearland and League City have both seen high population growth because of their affordability, and they were both lauded as the best places to live in 2025 by U.S. News and World Report. Pearland is an especially desirable place to live for high earners, and these career-focused residents aren't shy about being big spenders.

Sugar Land has also received plenty of praise as the third-best place to live in the U.S. in a separate Liveability.com study. It doesn't hurt that Sugar Land households bring in a median income of $184,570 per year.

"The findings reveal two clear paths to success: fast-growing suburban hubs buzzing with innovation and more established tech-driven economies that already have a global reach," the report said. "Together, they show that even smaller places can give you big advantages professionally, sometimes even more than the big metros."

Here's how other Texas suburbs fared among CoworkingCafe's top 100 best career hotspots in 2026:

No. 11 – Frisco
No. 15 – Flower Mound
No. 17 – Pflugerville
No. 20 – McKinney
No. 22 – Cedar Park
No. 31 – Round Rock
No. 37 – Mansfield
No. 43 – Allen
No. 58 – Richardson
No. 80 – Lewisville
No. 89 – Temple
No. 90 – Georgetown
No. 97 – Amarillo

suburbs innovation houston pearland sugar land league city

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kick off your career

3 Houston neighbors hustle onto top 100 list of U.S. career hotspots