in this economy?

Texas ranks as No. 1 state with the most people in financial distress

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 inflation isn't impacting Dallas as much as other U.S. cities.

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 Dallas neighbors hustle onto list of top 20 U.S. career hotspots

Photo by Nancy Jo Lambert on Unsplash

Frisco was the highest-ranked city in Dallas-Fort Worth.

Dallas has already proven to be a major hub for business, and now three of its neighbors – Frisco, Flower Mound, and McKinney – are rising up among the best small U.S. cities for big career opportunities.

A new nationwide survey from CoworkingCafe ranked the three Dallas-Fort Worth cities among its top-20 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."

Frisco ranked the highest, climbing up into No. 11, and CoworkingCafe said the suburb has a "highly engaged" workforce whose wages have surged 33 percent since 2019. Frisco households make a median income of $145,444 a year, the report added.

"The labor force is highly engaged (74.2 percent) with low unemployment and a strong employer base supported by 3,050 establishments per 100[,000] residents," the report said. "With 95 percent [of residents having] fiber access, excellent healthcare and top-tier safety, Frisco backs its economic strength with day-to-day comfort."

Frisco's high income and fast Wi-FI speeds also make it a highly desirable place to live for remote workers.

Affluent Flower Mound, which was crowned the best place to live in the U.S. in 2025, followed after Frisco in the No. 15 spot. CoworkingCafe said the suburb's $166,624 median household income has grown 25 percent from 2019 to 2024, and the city's "affordability remains favorable relative to income levels." Career-focused Flower Mound residents aren't shy about being big spenders.

If North Texans are seeking affordability over all other factors, No. 20-ranking McKinney is the place to be. The report said McKinney offers the perfect balance between "affordability, opportunity and amenities." It doesn't hurt that households earn a median annual income of $124,177, a figure that has ballooned 24 percent over the last five years.

"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."

Elsewhere in Dallas-Fort Worth, other career hotspots with populations under 250,000 residents that made it into the top 100 include Mansfield (No. 37), Allen (No. 43), Richardson (No. 58), and Lewisville (No. 80).

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

No. 17 – Pflugerville
No. 22 – Cedar Park
No. 31 – Round Rock
No. 59 – Pearland
No. 73 – League City
No. 76 – Sugar Land
No. 89 – Temple
No. 90 – Georgetown
No. 97 – Amarillo

suburbs dallas frisco mckinney flower mound innovation

in this economy?

Texas ranks as No. 1 state with the most people in financial distress

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