Shocking WalletHub Report: Why Texans Are Under More Financial Strain Than Anywhere Else

Well, this is not good news. It turns out Texas, America’s eighth-largest economy, also leads the nation in financial distress. According to WalletHub, in Q1 2025, “Texas is the state experiencing the most financial distress”. You’re looking at your bank account right this minute, aren’t you?

What “Financial Distress” Even Means

WalletHub says “financial distress” means you’ve got at least one credit account that’s fallen behind, like a loan or credit card that’s been paused, delayed, or isn’t getting paid on time.

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Basically, it’s when your bills are screaming, and your bank account’s whispering. And here in Texas, it’s not just a few folks hitting pause; we’re setting records:

• Ninth‑lowest average credit score in Q1 2025
• Third‑highest number of distressed credit accounts per person
• 7.1 % of Texans have at least one account in distress
• Non‑business bankruptcies rose over 22 %, a top‑6 increase nationwide

Whether it’s delaying a student loan or skipping a credit card bill, Texans are feeling the strain.

Why Texans Are Living Paycheck to Paycheck

Yep, that’s me too. I’m in the same rodeo, living paycheck to paycheck. It’s not just me; it’s Texas-wide:

• High housing and living costs, especially in metro areas
• Frequent natural disasters lead to unexpected expenses
• Inflation and wage stagnation are squeezing budgets tight
• Even with a booming state GDP, residents are juggling bills like rodeo clowns dodge bulls.

We’re All Stressing

Texas may top the charts in financial distress, but remember, you’re not alone. Millions of us are riding this same trail. Share a laugh, lend some tips, and maybe help each other dodge one more debt bullet.

READ MORE: Why Are Texans Getting So Many Robo Calls?

Wishing you brighter days and fatter paychecks, Texas!