New York ranked among the states with the highest levels of financial distress, according to a recent WalletHub study.
The study placed New York in the highest quartile for overall financial distress, ranking No. 16 among all 50 states for the number of residents facing financial challenges.
As inflation, unemployment, and unexpected expenses from health and natural disaster emergencies continue to strain household budgets, WalletHub analyzed states using nine key measures, including credit scores, bankruptcy filings and debt-related search interest, to determine where residents are experiencing the most financial hardship.
“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,” WalletHub analyst Chip Lupo said.
How New York ranked
New York received a financial distress score of 37.72, ranking No. 16 nationwide. The state ranked in the highest category for financial distress and also had one of the highest levels of online searches related to debt.
New York’s rankings included:
- No. 18 for credit score rank
- No. 26 for residents with accounts in distress
- No. 3 for “debt” search interest
States with the most financial distress
The five states with the highest levels of financial distress were:
- Kansas — 55.04 score
- Louisiana — 53.94 score
- Florida — 52.02 score
- Texas — 49.94 score
- South Carolina — 49.22 score
States with the least financial distress
The five states with the lowest levels of financial distress were:
- Michigan — 22.10 score
- Vermont — 21.90 score
- Hawaii — 21.14 score
- Rhode Island — 20.11 score
- Maine — 14.83 score
WalletHub’s analysis found higher levels of financial distress were concentrated across parts of the South and Central U.S., while several New England states had lower levels of consumer hardship. Maine ranked No. 1 for the largest improvement in credit scores between March 2025 and March 2026.
How WalletHub calculated the rankings
WalletHub compared all 50 states across six categories using nine financial distress indicators, including:
Credit score
- Average credit score in March 2026
- Change in average credit score from March 2025 to March 2026
Accounts in distress
- Share of residents with accounts in distress in the first quarter of 2026
- Change in the share of residents with accounts in distress from Q1 2025 to Q1 2026
- Average number of accounts in distress in Q1 2026
- Change in the average number of accounts in distress
Other financial indicators
- Change in bankruptcy filings from March 2025 to March 2026
- “Debt” search interest index
- “Loans” search interest index
The data used for the rankings was collected as of June 17, 2026, and came from sources including TransUnion and Google Trends.
This article originally appeared on Rochester Democrat and Chronicle: New York ranks among states with the most financial distress
