Washington is the seventh-least financially distressed state in the country, according to a new WalletHub report. The analysis examined factors such as average credit scores, changes in bankruptcy filings, and the share of residents with accounts in distress – those in forbearance or with payments deferred due to financial hardship.
Across the country, inflation, shifting unemployment levels, public health emergencies and natural disasters have made it harder for many people to stay on top of their bills, leading a growing share of Americans to fall behind on payments or seek relief on their accounts. People in some states are struggling more than others, though.
“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,” said WalletHub analyst Chip Lupo. “States with fewer people in financial distress are likely to have better economies, which makes them more attractive places to live.”
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In-Depth Look at Washington
Washington is one of the less financially distressed states in the country, though a few metrics stand out as trouble spots. Non-business bankruptcy filings in the state rose by more than 12% in the past year, the 22nd-highest increase nationally. In addition, Washington has the ninth-highest online search interest for the word debt, indicating that many people are worried about their finances.
Still, Washingtonians are generally displaying strong financial resilience, posting the second-best improvement in the average number of distressed accounts per resident, a drop of nearly 26% from a year earlier. In addition, the state has the fourth-fewest distressed accounts per resident overall.
How Washington Ranks in Key Categories
Overall, Washington is the seventh-least financially distressed state. This is an improvement from last year, when it ranked as the 15th-least distressed.
States With the Most People in Financial Distress
Overall Rank* | State | Total Score | Credit Score Rank | Distressed People Rank | Distressed Accounts Rank | Bankruptcy Rank | “Debt” Search Interest Rank | “Loans” Search Interest Rank |
|---|---|---|---|---|---|---|---|---|
1 | Kansas | 55.04 | 25 | 23 | 18 | 27 | 2 | 4 |
2 | Louisiana | 53.94 | 22 | 4 | 1 | 36 | 5 | 2 |
3 | Florida | 52.02 | 9 | 1 | 2 | 3 | 18 | 34 |
4 | Texas | 49.94 | 12 | 8 | 5 | 4 | 13 | 8 |
5 | South Carolina | 49.22 | 30 | 2 | 4 | 13 | 29 | 7 |
6 | Wyoming | 48.22 | 50 | 47 | 47 | 29 | 1 | 1 |
7 | Georgia | 46.85 | 14 | 7 | 9 | 17 | 15 | 9 |
8 | California | 46.8 | 33 | 3 | 7 | 15 | 5 | 28 |
9 | North Carolina | 46.31 | 31 | 5 | 6 | 11 | 29 | 13 |
10 | Kentucky | 44.18 | 39 | 6 | 3 | 33 | 29 | 13 |
The methodology can be found on the full version of the article on WalletHub.
