These states have the most residents in financial distress, data shows

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Experts say married couples can qualify for better credit and better terms on their loans, among many other financial benefits.

As Americans have faced financial challenges in recent years amid inflation, shifting unemployment levels and public health emergencies, a new analysis has ranked the states where residents are experiencing the greatest financial distress.

To better understand where financial distress is most prevalent, financial company WalletHub compared all 50 states across nine key metrics. The analysis examined factors such as average credit scores, changes in bankruptcy filings between March 2025 and March 2026, and the share of residents with accounts in distress.

WalletHub defined financial distress as having a credit account in forbearance or with payments deferred because of financial hardship.

Kansas ranks as financially most distressed

By the numbers:

Kansas ranked as the nation's most financially distressed state.

During the first quarter of 2026, the state had the 14th-highest number of distressed accounts per person and the 20th-highest share of residents with accounts in financial distress, at 3.9%. Kansas also posted the nation's 20th-lowest average credit score.

The report also found that non-business bankruptcy filings in Kansas increased by nearly 12% between March 2025 and March 2026, the 27th-largest increase nationwide. WalletHub also noted that Kansans searched Google for terms such as "debt" and "loans" at relatively high rates, suggesting many residents are seeking additional borrowing while already managing existing debt.

The state in the second-most financial distress was Louisiana, which ranked among the top states for Google searches related to "loans" — a reflection of growing concern about personal finances. This also contributed to Louisianians having the third-lowest credit score in the country. Around 12% of Louisianians also had a credit account in forbearance or with deferred payments, the highest share in the country.

Kansas ranked as the most financially distressed state, followed by Louisiana and Florida. (Credit: Getty Images)

Florida placed third overall. The state had the fifth-highest number of distressed accounts per person during the first quarter of 2026 and experienced the nation's second-largest increase in the share of residents with distressed accounts compared with a year earlier.

"Measuring the share of residents in financial distress is a good way to take the pulse of a state and see whether people are generally thriving or having trouble making ends meet," Chip Lup, a WalletHub analyst, said in a statement. "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."