NC ranks in top 10 of most financially distressed states: What to know

Many Americans are struggling financially - and a recent study shows that North Carolinians may be particularly strapped for cash.

The goal of personal finance company WalletHub is to help consumers stay financially savvy with tools to improve credit scores, compare credit card offers and personal loans, gain a "holistic picture of your financial health" and more. The company's 2024 list of most financially distressed states analyzed nine metrics to gain an understanding of who is struggling the most.

“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 Cassandra Happe. "When you combine data about people delaying payments with other metrics like bankruptcy filings and credit score changes, it paints a good picture of the overall economic trends of a state.”

States with the most people in financial distress

Financial distress was defined by WalletHub in the study as having a credit account that is in forbearance or has payments deferred. The metrics used in the study of all 50 states included factors like average credit score, change in the number of bankruptcy filings between March 2023 and March 2024 and the share of people with accounts in distress.

Here's WalletHub's list of most financially distressed states:

1. Michigan
2. Texas
3. Nevada
4. Rhode Island
5. Georgia
6. Louisiana
7. North Carolina
8. Mississippi
9. New York

Here's where N.C. ranked out of the 50 states among specific metrics used in WalletHub's study:

• Credit score - 16th
• People with accounts in distress - 15th
• Average number of accounts in distress - 14th
• Change in bankruptcy filings March 2023 vs. March 2024 - 11th
• "Debt" search interest index - 4th
• "Loans" search interest index - 15th

States with the least people in financial distress

On the opposite end of the spectrum, with New Hampshire deemed the most well-off, the least financially distressed states includes:

• 50. New Hampshire
• 49. Iowa
• 48. Connecticut
• 47. Vermont
• 46. Wisconsin
• 45. Nebraska
• 44. Maine
• 43. Kansas
• 42. Oregon
• 41. Wyoming

Iris Seaton is the trending news reporter for the Asheville Citizen Times, part of the USA TODAY Network. Reach her at iseaton@citizentimes.com.