Houston, Texas – Money struggles have been a common story for many Americans lately. Even as things improve a bit, bills keep piling up, and prices just don’t seem to stop rising.
A recent WalletHub report shines a spotlight on where people are feeling the pinch the most, and Houston tops the list.
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WalletHub released a new report ranking the 100 largest U.S. cities where people are facing the most financial distress. And guess what? Houston came in at the top.
Wait, Houston? Yep.
WalletHub just ranked the 100 largest U.S. cities based on financial distress, and Houston landed at No. 1.
So, what exactly is “financial distress”? WalletHub defines it as having a credit account in forbearance or with deferred payments. You’ve hit a rough patch and your lender has given you a break from making payments for a while.
They looked at things like average credit scores, changes in bankruptcy filings, and how many people in each city have distressed accounts. They even tracked Google searches for terms like “debt” and “loans,” and Houstonians are Googling those more than people in most other cities.
Why is Houston hurting?
A few reasons. For one, more than 9% of people in Houston have accounts in distress. That’s a big number. And the number of distressed accounts per person is also high. But it’s not just about credit scores and payment history.
We’re still feeling the ripple effects of things like tariffs, and if you’ve been to the grocery store lately, you’ve seen the cost of eggs climb to ridiculous levels. These little price hikes on essentials add up fast, especially for families already living paycheck to paycheck.
Quick Tips for Easing the Pressure
Here are some tips from WalletHub:
- Ask for Help: Many lenders offer hardship programs that let you pause or reduce payments temporarily.
- Cut a Deal: You can negotiate lower interest or smaller payments directly with your credit card company.
- Watch Out for Scams: Skip flashy debt settlement offers that promise too much and cost even more.
- Consider Consolidation: Combining debts into one payment with a lower rate could help, if your credit’s in decent shape.
- Avoid Payday Loans: They seem easy, but the interest is brutal and can trap you in a cycle.
- Tighten the Budget: Trim non-essentials and put extra cash toward paying down debt faster.
The bottom line: Times are tough, but there are real, doable steps you can take.