Priya Patel
TLDR:
- Chicago and Houston rank as the cities with the most people in financial distress according to WalletHub.
- Credit card debt reached a record high at $1.13 trillion, leading to financial struggles for many Americans.
In a new report from WalletHub, Chicago and Houston emerged as the top cities where residents face significant financial stress. The analysis considered bankruptcy filings, credit scores, accounts in forbearance, and online searches for keywords like “debt” and “loans” to determine the rankings. Despite the overall health of the US economy, concerns are growing as Americans are burdened by record-high credit card debt amounting to $1.13 trillion. The personal savings rate has declined and inflation rates have soared, leading to financial challenges for many households.
The report highlights urban areas such as New York, Los Angeles, Dallas, and Las Vegas among the top 10 cities where residents are experiencing financial distress. As inflation and interest rates continue to rise, Americans are turning to credit cards and loans to cover expenses, adding to their financial burden. The study also emphasizes the importance of seeking financial help and debt counseling for those struggling with their finances.
